The beginning of October 2025’s first trading day was marked by volatility but closed strong as bulls took over. Global markets were shaken by the shutdown of the U.S. government, but local indicators saw a turnaround with the RBI policy review, healthy GST collections, and growth in auto sales. Corporate-wise, order inflows, MoUs, acquisitions, and industry news were seen from various companies that led to stock-specific action. Let’s see the granular wrap.
The U.S. government officially shut down when it did not achieve the needed 60 votes in the Senate. Trapped at 45 against 55, the impasse shut down the government and created confusion on the global markets.
- The previous shutdown was in December 2018 and before that in 1995, both of which affected jobs and growth.
- Jobs statistics showed 72.27 lakh vacancies, an indication of a freeze in recruitment under the "no hire, no fire" policy.
World equity indices experienced a two-way movement – initial jitter was absorbed by hope that parleys would restart in the near term.
GST Collection
- September GST collection increased to ₹1.89 lakh crore from ₹1.86 lakh crore in August, a 9.1% YoY expansion.
- This is as per the trend of healthy tax payment and strong domestic consumption.
RBI Policy Highlights
Reserve Bank of India (RBI) monetary policy was the highlight of the day. Highlights:
- Repo rate not changed; RBI adopted a neutral, growth-neutral view.
- Funding for M&A permitted – aiding liquidity for mergers and acquisitions.
- Pledging limit under loan against shares raised from ₹20 lakh to ₹1 crore.
- IPO funding limit raised from ₹10 lakh to ₹25 lakh, boosting retail participation.
- GDP growth revised to 6.8%, and inflation estimate reduced from 3.1% to 2.6%.
- ECL Framework to be operational from April 2027, wherein banks have to categorize assets into three stages of risks.
- Liquidity operations to be pre-announced a day in advance, marking the beginning of transparency.
The policy was greeted with open arms by the markets as growth-positive without triggering inflation.
Automobile manufacturers posted better September sales on the back of festival season buying and rural pickup.
- Bajaj Auto: Sales were 9% higher at 5.10 lakh units; exports were 18% higher at 1.85 lakh.
- Mahindra & Mahindra (M&M): Domestic sales rose 10% at 56,243 units; 3W sales were up 30%. Tractor sales were 66,111 units.
- Escorts: Sales rose 47.6% at 18,267 units, with export of tractors improving.
- Tata Motors: CV sales were up 19%, PVs up 47%, EVs up 96% to 9,191 units.
- Ashok Leyland: Sales rose 9% at 18,813 units.
- Eicher Motors (RE): Sales rose 43% to 1.24 lakh units.
- SML Isuzu: Sales declined due to pressure on market share.
The good sales momentum reflected optimistic mood pre-festive season.
Financials & Insurance
- New India Assurance received a GST demand notice of ₹2,379 crore.
- ICICI Lombard released GST notice of ₹1,901 crore (2017–2022 period).
- Indian Overseas Bank (IOB) penalised ₹31.8 lakh by RBI for PSL deficiencies.
- Life & health insurers can reduce agent commissions to 18%, impacting PB Fintech stocks.
Pharma & Healthcare
- Lupin received USFDA approval for Rivaroxaban suspension generic.
- Pfizer received 3-year tariff waiver and agreed to reduce patented medicine prices by 50%.
- Zydus Wellness set Dec 31, 2025, to finalize Sterling Biotech API acquisition.
Infrastructure & Engineering
- Atlanta partnered with IRCON for a 34.8 km Maharashtra expressway.
- RITES inked an MoU with Etihad Rail.
- Oil India & GAIL signed a partnership MoU.
- AGI won a ₹325 crore construction order.
Manufacturing & Industry
- BEL won new orders worth ₹1,092 crore after Sep 16 and another radar order worth ₹2,906 crore from IAF.
- HAL signed a ₹1,200 crore engine supply pact with DRDO.
- Bharat Dynamics won ₹850 crore missile orders.
- Paras Defence secured ₹320 crore surveillance order.
- Swan Defence entered shipbuilding joint venture with Samsung Heavy Industries.
Autos & EVs
- Hyundai began production at new Pune unit (capacity: 1.7 lakh units).
- Hero MotoCorp divested 0.97% stake to BNP Paribas for ₹1,035 crore.
- Olectra Greentech secured a ₹500 crore e-bus order.
IT & Technology
- Subex renewed APEC fraud management contract by 5 years.
- NewGen Software fined ₹12.65 crore by Qatar court for delayed projects.
- Infosys acquired a ₹1,000 crore digital opportunity from European bank.
- TCS acquired a ₹1,200 crore cloud migration contract.
- Wipro acquired an ₹850 crore cybersecurity deal.
- HCLTech acquired an ₹900 crore AI integration deal.
FMCG & Retail
- D Mart added footprint, opened new store.
- P N Gadgil opened new Mumbai store, now at 63 stores.
- ABDL began production of PET bottles in Telangana for ₹115 crore investment.
- Nestlé, HUL, ITC, Adani Wilmar did procurement and stake deals.
Markets cheered the RBI’s growth-friendly policy and strong auto sales data, shrugging off global uncertainties. Bulls celebrated Vijayadashami a day early, as benchmark indices surged.
- Nifty 50 closed higher with strong support from auto, banks, defence, and FMCG.
- Bank Nifty saw renewed momentum after RBI’s IPO funding & loan pledge relaxations.
- Pharma & Insurance witnessed stock-specific volatility due to regulatory actions.
- Going forward, investors will watch:
- U.S. shutdown resolution timeline.
- Crude oil flows after OPEC+ production realignments.
- Festive season demand trends in auto, retail, and FMCG industries during October.
The 1st October 2025 market session reflected India’s resilience in the face of global shocks. With RBI playing a supporting role, increasing GST collections, firm auto sales, and healthy order wins in defence & infra, India’s growth story remains on track. Short-term volatility from global headwinds notwithstanding, domestic fundamentals remain unscathed.