NEWS UPDATE 1 OCTOBER

📌 Major Headlines

1. RBI Keeps Repo Rate Unchanged
   The Reserve Bank of India’s Monetary Policy Committee unanimously decided to maintain the key repo rate at 5.50 %, as expected. The stance is labelled “neutral” amid improving inflation trends and to assess effects of earlier rate cuts. Reuters
2. Foreign Investors Pull Out ~USD 2.7 B from Indian Stocks in September
   Foreign portfolio investors (FPIs) withdrew about USD 2.7 billion from Indian equity markets in September, marking the third consecutive month of outflows. For the year to date, FPI outflows total ~USD 17.6 billion, pushing concerns over weakening foreign confidence. Reuters
3. US Government Shutdown Starts — Markets Jittery
   The U.S. federal government entered a shutdown after Congress failed to pass a funding bill. The shutdown could delay key economic releases (e.g., non-farm payrolls) and inject uncertainty into Fed policy decisions. Markets reacted with increased volatility: U.S. futures fell, and gold hit record highs for a third day. Reuters+2AP News+2
4. Indian Markets Open Modestly Higher Ahead of RBI Decision
   On the morning of Oct 1, Indian indices opened in the green:
   • Sensex above 80,300 levels
   • Nifty 50 around 24,625 (up ~14 points)
     However, gains were cautious, reflecting investor indecision ahead of the RBI announcement. The Times of India+2The Economic Times+2
5. Robust IPO Pipeline in India
   India is poised for a strong IPO month in October, with expectations of raising over USD 5 billion. Large deals from entities like Tata Capital and LG Electronics’ India business are fueling confidence in the primary markets, despite pressure in secondary equity markets. Bloomberg Law+2Business Standard+2
6. Nomura Gears Up for Volatility
   Nomura Holdings plans to expand its interest rate and FX trading divisions, positioning for higher market volatility. The firm views macro products (rates, FX) as counter-cyclical hedges in turbulent equity markets. Reuters

🔍 What to Watch / Market Risks

• The RBI’s tone and commentary post-rate decision will be closely parsed for hints of future cuts or tightening.
• Continued FPI outflows could put pressure on valuations, especially in sectors with higher foreign shareholding (e.g. IT).
• The U.S. shutdown adds an extra layer of uncertainty: delayed data could hamper central bank decisions globally.
• Support and resistance levels for Nifty:
  • Support: ~24,500 – 24,400
  • Resistance: ~24,750 – 24,800 mint+2Moneycontrol+2