Stock Market LIVE Updates: Nifty near 24,800, Sensex up 530 pts; India VIX down 3%, PSU Banks drag

Wall Street Gains Despite the Looming Government Shutdown; All Eyes on the RBI’s MPC Decision Today, Derivatives Suggest a Positive Bias for the October Series.

The U.S. moved closer to a government shutdown Tuesday as a Senate vote to extend funding past the midnight deadline failed and President Donald Trump threatened to expand his federal workforce purge.

Wall Street’s three major indexes closed higher in a volatile session, posting quarterly and monthly gains despite concerns about the shutdown that threatened to delay economic data releases and complicate the Federal Reserve’s interest rate decisions.

The S&P 500 and Nasdaq delivered their strongest September performance in 15 years, powered by late-session rallies and gains in pharmaceuticals and semiconductors. Pfizer and Merck led the advance, with additional support from Nvidia and related technology stocks.

Republicans and Democrats appeared unlikely to reach a compromise that Trump would sign before the midnight deadline, which would threaten to halt operations across large portions of the federal government.

Pfizer and President Trump announced a deal Tuesday under which the drugmaker will lower Medicaid prescription drug prices to match rates in other developed countries in exchange for tariff relief.

Gold reached record highs on safe-haven demand driven by shutdown risks and expectations of dovish Federal Reserve policy. Despite modest profit-taking, fundamentals remain strong, with gold up more than 45% year-over-year.

The six-member MPC, led by RBI Governor Sanjay Malhotra, is set to announce its policy decisions — including the key repo rate — at a press conference today.

The market is pricing in the possibility of two more rate cuts in this cycle, totalling 50 basis points; however, the central bank is expected to maintain the status quo on the repo rate in today’s review.

September Automobile sales figures will offer a fresh read on consumer demand trends, especially in the backdrop of tax cuts and the upcoming festive season.

We are starting the October derivatives series at a record 1,488 Cr shares OI, with 58% of stocks showing long build-up and short covering, indicating a positive bias despite market corrections. Technical levels indicate support at 24300-24500 and resistance at 24800-25000.

Indian markets remained subdued, falling for an eight consecutive session. However, cues from the RBI’s MPC and quarterly updates from automobile and other corporates will likely drive the markets in the near term.