NEWS UPDATE 4 OCTOBER

India / Domestic Highlights

• Indian markets ended on a positive note on 3 October: Nifty50 closed above ~ 24,850 and Sensex rose more than 200 points. The Times of India+1
• The rally was supported by strength in metal, PSU banks, midcaps & smallcaps. The Economic Times+1
• Stock-specific trading dominated, as broader macro cues showed signs of cooling. The Economic Times
• Power Grid Corp. outperformed peers, rising ~ 3.15% during the session. MarketWatch
• Hindustan Unilever saw a modest gain of ~ 0.34%, outperforming the market trend. MarketWatch
• Tata Capital successfully raised ₹ 46.42 billion from anchor investors ahead of its IPO. Reuters
• With multiple large IPOs expected in Oct-Dec (≈ ₹ 44,000 crore), the IPO pipeline is considered a “golden shot” for markets. Maharashtra Times
• Analysts expect banks & financials to lead the next leg of the rally, given policy support and easing norms. The Economic Times
• Retail investors are reportedly increasing margin borrowing, focusing on historically underperforming blue chips. Analysts caution the risk. mint

🌐 Global / U.S. Market Themes & Drivers

• Wall Street ended the week on highs — the S&P 500, Dow, and Nasdaq achieved fresh records, largely driven by tech and AI momentum. AP News+1
• Federal Reserve policy expectations shifted: BofA now projects the next rate cut in October (versus earlier forecasts of December). Reuters
• A weaker U.S. dollar is benefiting multinational firms (which earn overseas), widening the performance gap between export/sensitivity stocks vs domestically oriented ones. Financial Times
• Despite the U.S. government shutdown, markets are holding up, bolstered by optimism in the AI and tech sectors. AP News+1

🔍 What to Watch Going Forward

1. Fed rate decisions & communications — any signals of “overshoot” or dovish bias could ripple globally.
2. Earnings season (especially tech / AI names) — validation (or disappointment) here may define short-term sentiment.
3. Foreign Institutional Investor flows — India has seen heavy FII outflows this year, which tempers upside. 5paisa
4. New IPO performance — how the market digests fresh listings (esp. large ones) may indicate appetite/risk tolerance.
5. Sector rotation — strength in metal, banks, small/midcaps so far; whether this broadens or narrows will matter.