The first week of October 2025 has been exciting for both the domestic and international markets. In the midst of macroeconomic imbalances and global headwinds, Indian equities were able to stay resilient due to favorable domestic cues, corporate earnings, and sectoral expansion. Let us look at the new happenings in the global economy, Reserve Bank of India action, corporate performances, mergers and acquisitions, sectoral updates, and market action.
- US Government Shutdown: Much-hyped shutdown in the US finally happened, but to everyone's surprise, its spillover effect on Indian equities was not significant. Investors simply ignored it and instead kept a close eye on domestic liquidity and growth in earnings.
- H-1B Fee Impact: Increased hike in H-1B visa fees has put Indian IT players under pressure. Some players have already started cutting their overseas workforce to manage increasing costs. This may take a margin hit in the near term, although long-term digital transformation contracts are in place.
- Crude Oil & Commodities: The recent crude price volatility is now over, favoring the energy sector operators such as ONGC and Reliance. World steel prices also reached new highs, favoring operators such as JSW Steel.
The Reserve Bank of India had signaled previously a cut in the Cash Reserve Ratio (CRR) by 1% (100 bps) in four tranches—September 6, October 4, November 1, and November 29, 2025. Reduction is in 25 bps tranches lowering the CRR by 1% step by step to 3%.
This policy measure will infuse liquidity into the system, reduce funding costs, and accelerate credit growth ahead of the festival season. Segmental beneficiaries are likely to be housing finance, automotive, and consumer durables.
Automotive Sector
- Maruti Suzuki posted soft domestic sales but good exports. The company expects festive demand to drive October-November numbers.
- Hyundai started production in its Talegaon new factory (1.7 lakh units per year capacity), further establishing its Indian manufacturing base.
- Hero MotoCorp had a great show with sales of 6.87 lakh units, 5% YoY growth in domestic sales, and exports more than doubling. Success in new model launches continued to drive momentum.
- TVS Motor sales rose 22% YoY in Q2, and 12% in September, as demand in two-wheelers was strong.
Energy & Infrastructure
- Coal India's production and sales fell by 3.9% and 1.1%, respectively, on account of supply issues.
- Tata Power inked a tie-up with its Mumbai distribution unit to start an 80 MW green power venture, moving ahead with its green transformation.
- Adani Green Energy dedicated a 50 MW solar and 31.2 MW wind power plant at Khawda, taking its installed capacity to 16,679 MW.
- Wari Energy revealed a massive ₹8,000 crore investment to increase its lithium-ion battery storage factory to 20 GWh capacity as well as increasing electrolyzer and inverter production.
Consumer & Retail
- V-Mart Retail reported ₹807 crore sales (+22%), same-store sales +11%. The company added 25 new stores, bringing overall presence to 533 stores.
- Sai Silks reported 28% increase in sales and added five stores.
- Aditya Vision grew in an aggressive manner by adding six new showrooms in Bihar, Jharkhand, and Uttar Pradesh.
- PC Jewellers revenue increased 63%, but its debt declined 23%, tightening its balance sheet.
- Nestlé India bought a second Maggi production line at Sanand for an investment of ₹85 crore.
- RBL Bank was issued a GST notice of ₹92 crore.
- CSB Bank achieved 25% deposit growth and 29% advance growth.
- South Indian Bank posted 9% growth in advances and 10% growth in deposits.
- Indian Bank reported 12% YoY advances growth, total business, and deposits growth.
- TruAlt Finance listed well on stock exchanges, opening at ₹545.40 on NSE and ₹542 on BSE, versus issue price of ₹496.
Manufacturing & Industrial
- SKF Industries announced its effective date of demerger as October 15.
- PTC Group subsidiary entered into a multi-million-pound agreement with UK's Cool Book for the supply of cast parts and Roto Dynamic Heater machinery.
- Goodluck India was licensed under the ARM Act for "empty shell" manufacturing.
Hospitality & Real Estate
- Lemon Tree Hotels added a 111-room hotel in Andhra Pradesh to its portfolio of properties.
- Godrej Properties, DLF, and Piramal Realty concluded massive realty transactions, reflecting positivity in luxury housing space.
Gainers
- Adani Enterprises jumped 5.25% on infra expansion news.
- BEL gained 2% after winning new defense orders.
- IndusInd Bank rose 1.16% on strong Q2 guidance.
- SBILife rose 1.33% after regulatory clearance for a new insurance product.
- Bharti Airtel rose 0.97% on 5G rollout updates.
- NTPC, ONGC, JSW Steel, Hindustan Zinc, and Maruti Suzuki also posted marginal gains.
Deal Flow
- Tata Power sold stake in a group company to BlackRock for ₹1,200 crore.
- Reliance Retail acquired 51% of Urban Ladder, increasing lifestyle retail footprint.
- Hero MotoCorp acquired 30% stake in Ather Energy, increasing EV expansion.
- Infosys acquired a US-based AI firm for $250 million, strengthening digital capabilities.
- JSW Energy acquired Mytrah Wind assets at ₹2,300 crore.
- Other banks such as HDFC and ICICI Bank divested loan books and stakes to ease balance sheets.
Indian government continued to favor growth areas with large schemes and clearances:
- Introduction of a ₹15,000 crore EV subsidy program under FAME III.
- PLI scheme offered to the textile industry with a ₹4,000 crore allocation.
- Railways offered ₹5,000 crore redevelopments of stations.
- ₹3,000 crore defense R&D fund given to private companies.
- Digital India given an extra ₹2,000 crore injection for AI and cloud infrastructure.
The combination of RBI’s liquidity support through CRR cuts, strong corporate expansions, and government incentives is likely to cushion Indian markets against global uncertainties.
- Short-term risk factors: H1B visa fee hikes for IT firms, sluggish domestic auto demand, and commodity volatility.
- Long-term positives: Renewable energy expansion, manufacturing investments, retail growth, and digital infrastructure spending.
As earnings season approaches, investors are cautioned to keep a close eye on bank, auto, renewable energy, and consumer retail stocks, but international leads such as US monetary policy and crude prices will be key triggers.