The central bank said the Indian economy remained resilient, with real GDP growth at 7.8% in Q1 FY27, supported by private consumption, fixed investment, a rebound in merchandise exports and sustained services exports. The RBI raised its FY27 real GDP growth forecast to 7.1% from 6.7% projected in its August policy review. It also revised upward its Q2 and Q3 growth projections to 7.2% and 6.9%, respectively, from 6.4% and 6.5% earlier.

Going ahead, market participants will track the September-quarter earnings season, which kicked off with results from GM Breweries and IT bellwether Tata Consultancy Services (TCS). Investors will also monitor sector-specific business updates, stock-specific developments and movements in the Indian rupee for further cues on market direction. Investors will track foreign institutional investors (FIIs) flows.

In the week ended on Friday, 9 October 2026, the S&P BSE Sensex jumped 562.63 points or 0.78% to settle at 72,472.33. The Nifty 50 index gained 98.50 points or 0.44% to settle at 22,520.45.

Weekly Index Movement:

The key equity benchmarks ended higher on Monday, snapping a four-session losing streak as easing crude oil prices, softer US jobs data and buying across sectors improved investor sentiment. The S&P BSE Sensex rose 472.77 points, or 0.66%, to 72,382.47, while the Nifty 50 index gained 133.80 points, or 0.60%, to 22,555.75. Over the previous four sessions, the Sensex and Nifty had declined 2.69% and 3.11%, respectively.

The key equity benchmarks ended sharply higher on Tuesday, extending gains for a second consecutive session. The firmness was supported by positive global cues, easing crude oil prices and strong quarterly business updates from several companies. The S&P BSE Sensex jumped 685.34 points or 0.95% to 73,067.81. The Nifty 50 index rose 220.35 points or 0.98% to 22,776.10. Over two consecutive sessions, the Sensex and Nifty have jumped 1.61% and 1.58%, respectively.

The key equity indices ended with significant losses on Wednesday, tracking weak global cues. Investor sentiment remained cautious after the Reserve Bank of India (RBI) raised the policy repo rate by 25 basis points to 5.50% and shifted its monetary policy stance to calibrated tightening. The S&P BSE Sensex declined 429.11 points or 0.59% to 72,638.70. The Nifty 50 index fell 173.05 points or 0.76% to 22,603.05. In the past two consecutive sessions, the Sensex and Nifty have jumped 1.61% and 1.58%, respectively.

Domestic equity market suffered a sharp selloff on Thursday, with benchmark indices falling to their lowest levels in 18 months as surging crude prices, a hawkish monetary policy stance and weak global cues weighed on investor sentiment. The S&P BSE Sensex tumbled 1,045.46 points or 1.44% to 71,593.24. The Nifty 50 index tanked 371.25 points or 1.64% to 22,231.80. In the two consecutive trading sessions, the Sensex declined 2.02%, while the Nifty 50 fell 2.39%.

The key equity indices ended with a major gains on Friday, snapping a two-session losing streak, as easing crude oil prices and improved global sentiment lifted investor appetite following Thursday’s sharp selloff. The barometer index, the S&P BSE Sensex jumped 879.09 points or 1.23% to 72,472.33. The Nifty 50 index added 288.65 points or 1.30% to 22,520.45.

RBI hikes repo rate by 25 bps:

The RBI Monetary Policy Committee (MPC) unanimously raised the repo rate by 25 basis points to 5.50% from 5.25%, in line with expectations, after its three-day meeting on 5-7 October. The RBI raised the repo rate for the first time in nearly three years and changed its policy stance from neutral to calibrated tightening. The Standing Deposit Facility (SDF) rate was raised to 5.25%, while the Marginal Standing Facility (MSF) rate and bank rate remained unchanged at 5.75%.

Economy:

The World Bank raised India’s FY27 GDP growth forecast to 7.1% from 6.6%, citing resilient domestic demand and strong momentum in consumption, investment and exports. Investment and exports grew around 12% in Q1 FY27, while services remained the largest driver of domestic growth. The bank also raised its 2026 South Asia growth forecast to 6.9% from 6.3%, while lowering the forecast for the region excluding India to 3.6% from 4.1%. Higher energy prices and El Niño remain key risks to the outlook.

Meanwhile, India’s services sector strengthened in September, with the seasonally adjusted HSBC India Services PMI Business Activity Index rising to 55.2 from 54.1 in August, marking the strongest growth since June. However, the average growth during Q2 FY27 was the weakest since the quarter ended March 2022. The improvement was supported by stronger domestic demand, while export business continued to expand at a slower pace. Input-cost pressures eased to a 10-month low, reducing the need for price increases, while service providers’ expectations for future activity improved for the second consecutive month.

Stocks in Spotlight:

Tata Consultancy Services (TCS) jumped 3.90%. The IT major reported a 1.3% quarter-on-quarter and 11.2% year-on-year increase in consolidated revenue to Rs 73,188 crore in Q2 FY27. Constant-currency revenue growth stood at 0.5% QoQ. Net profit rose 4.01% QoQ and 14.98% YoY to Rs 13,884 crore, with a net margin of 19%. The company reported an operating margin of 24% in Q2 FY27.

The company's total contract value (TCV) stood at $9.6 billion in Q2 FY27, up from $9.5 billion in Q1 FY27 but down from $12 billion in Q4 FY26.

The company declared a dividend of Rs 12 per share. The record date is 14 October 2026, and the dividend will be paid on 30 October 2026.

Titan Company fell 2.34%. The company reported its provisional business update for Q2 FY27. The company said its consumer businesses recorded 25% year-on-year growth during the quarter ended 30 September 2026. It added 78 net stores during the quarter, taking its combined retail network to 3,758 stores. The jewellery business saw a moderation in growth from 39% in Q1 FY27 to around 21% in Q2 FY27.

Kalyan Jewellers India gained 4.82%. The jewellery retailer reported consolidated revenue growth of more than 26% year-on-year (YoY) in Q2 FY27, supported by strong operating momentum across its key markets. Revenue from the company's India operations grew approximately 27% YoY during the quarter, with same-store sales growth (SSSG) of around 20%, despite a high base in the year-ago period due to strong Navratri sales.

Trent surged 13.11%. The company's standalone revenue from operations, excluding GST, rose 23% year on year to Rs 5,788 crore in Q2 FY27 from Rs 4,724 crore in Q2 FY26. Revenue for the first half of FY27 increased 21% to Rs 11,454 crore from Rs 9,505 crore in the corresponding period a year earlier. Trent crossed the 1,000-store milestone for its Zudio format during the quarter. As of 30 September 2026, the company's portfolio stood at 1,342 stores across Westside, Zudio and other lifestyle brands.

Raymond Realty surged 7.64%. The company reported a 98% year-on-year (YoY) increase in pre-sales to Rs 902 crore in Q2 FY27, compared with Rs 455 crore in Q2 FY26.

Tata Motors Passenger Vehicles rose 0.18%. The company’s wholly owned subsidiary, Jaguar Land Rover (JLR), reported a 24.54% year-on-year (YoY) increase in wholesales to 82,400 units in Q2 FY27 from 66,165 units in Q2 FY26.

FSN E-Commerce Ventures (Nykaa) jumped 5.55%. The company provided a quarterly business update for Q2 FY27, indicating continued growth across its Beauty and Fashion verticals. Consolidated gross merchandise value (GMV) is expected to grow in the high-twenties range in Q2 FY27, while net sales value (NSV) growth is expected to be in the early-thirties range. Consolidated net revenue growth is expected to be in the late-twenties range.

Global Markets:

Europe Market:

Eurozone business activity strengthened in September, with the Services Purchasing Managers’ Index (PMI) rising to 53.0 from 51.6 in August. The Composite PMI increased to 53.1 from 52.0, reaching its highest level since April 2023.

Industrial producer prices in the euro are and EU rose 1.9% month-on-month in August.

In the United Kingdom, the Services PMI eased to 52.1 in September from 52.5 in August, while the Composite PMI declined to 52.0 from 52.5, signalling a moderation in private-sector business activity.

Asian Market:

In Japan, consumer confidence edged lower to 35.4 in September 2026, compared with 35.5 in August 2026. The Services PMI declined to 51.3 in September 2026, down from 52.5 in August 2026.

In Singapore, retail sales fell 1.0% month-on-month while, increasing 0.7% year-on-year in August 2026.

Philippines September headline inflation accelerated to 7.2% in September 2026 from 6.1% in August, while core inflation rose to 4.7% from 4.1%, indicating intensifying price pressures.

US Market:

US nonfarm payroll employment increased by 29,000 in September, well below economists' expectations of 90,000. The unemployment rate rose to 4.2% from 4.1% in August. Payroll gains for July and August were revised lower by a combined 60,000.

The weaker-than-expected jobs data reduced expectations of a 25-basis-point Fed rate hike at the end of October. CME FedWatch showed the probability of a hike at 22.7%, down from 24.4% in the previous session and 64.2% a week earlier.

The release of minutes from the Federal Reserve's September meeting also weighed on sentiment. The minutes showed that all 19 policymakers supported the September rate hike, while most officials considered another rate increase likely to be appropriate by the end of the year. However, the minutes also showed differences among policymakers over the inflation outlook and the need for further rate increases.

The US trade deficit widened sharply in August to $105.6 billion, up 13.7% from the previous month and the largest since March 2025. The increase was driven largely by a jump in imports, including crude oil, semiconductors and other goods, with imports reaching a record level.