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Indian Stock Market Closes Higher on September 30, 2025

Banking stocks lead the rally as RBI eases norms. Midcaps and smallcaps struggle for broad-based gains. Global risks and FII outflows pose threats.

In this picture we can see a market, in which we can see some stoles and we can see few people are...
In this picture we can see a market, in which we can see some stoles and we can see few people are around.

Indian Stock Market Closes Higher on September 30, 2025

The Indian stock market today closed higher on September 30, 2025, with Nifty at 24,678 and Sensex at 80,469. This came amidst a backdrop of relaxed lending norms for gold-backed loans and a larger share of overseas debt being counted as part of US banks' Additional Tier-1 (AT1) capital, as announced by the Reserve Bank of India.

The rally was not broad-based, with banking and financial stocks leading the recovery. Key movers of the day included banking giants HDFC Bank and Kotak Mahindra Bank, which found buyers. Bharat Electronics and some Tata Group companies also saw increased interest. Meanwhile, consumer-focused companies lagged. The midcap and smallcap indices recorded modest gains, though their performance remained uneven, with investors preferring companies with strong earnings visibility and stable balance sheets.

Foreign institutional investors (FIIs) continued to sell Indian equities during the month of September, while domestic institutional investors (DIIs) showed buying interest. Risks to the Indian stock market include deteriorating global risk appetite, rising oil prices, and sudden foreign institutional investor outflows. However, opportunities exist in strong corporate earnings and policy measures aimed at boosting credit flow.

The direction of the Indian stock market in the coming months is likely to depend on foreign fund flows and corporate earnings. Global developments, such as movements in the US dollar and commodity prices, will also influence the market. The Reserve Bank of India's measures to improve liquidity and strengthen PNC banks' balance sheets have supported the recovery in banking and metal stocks.

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