Closing Bell: Market snaps 2-day fall; Sensex up 333 pts, Nifty above 23,200

Indian equities are likely to remain cautious amid elevated crude prices, continued Foreign Institutional Investor selling and uncertainty ahead of the US Federal Reserve’s policy decision.

Brent crude remains above USD 108/bbl, near a four-month high, while the US 10-year Treasury yield surpassed 5%, keeping inflation and rate concerns elevated.

The Nifty 50 rose 0.4%, ending in the green after two consecutive sessions of decline, while Midcap100 ended flat and Smallcap100 declined 0.2%.

The recovery was supported by value buying at lower levels, while a pause in the recent crude rally provided some relief. The US 10-year Treasury yield touched 5.04%, its highest level since July 2007, as elevated oil prices continue to fuel inflation concerns. Investors await the US Federal Reserve’s policy decision today, with markets pricing in a high probability of a 25bps rate hike, while guidance on the future rate path will remain key.

Cement stocks remained under pressure, after reports of capacity additions outpacing demand growth through FY28 raised concerns over lower capacity utilisation and pricing pressure, while elevated fuel costs could further weigh on margins.

FMCG stocks (+1.6%) remained in focus as the festive season is expected to support retail consumption and consumer spending. PSU bank stocks (+1.4%) also advanced after two consecutive sessions of decline, supported by renewed buying interest.

NPCI introduces Merchant Discount Rate (MDR) from October 15, with 0.4% on Person-to-Merchant transactions above Rs 2,000, capped at Rs 300, and a flat Rs 5 fee for select categories such as railways, telecom, insurance and fuel; Person-to-Person transactions and transactions up to Rs 2,000 remain free, supporting UPI monetisation and long-term ecosystem sustainability.