Festive fireworks fuel India’s stock market surge
Strong Q2 earnings, record-low inflation, and a flood of foreign investment ignite the equity rally as domestic consumption hits a $67 bn high
image for illustrative purpose
New Delhi: India’s equity markets experienced a powerful resurgence in October, driven by strong festive consumption, stabilising Q2 earnings, and a clear revival in foreign investor appetite, a report said on Wednesday.
The nation’s macroeconomic backdrop remained notably supportive through the month. Additionally, consumer inflation eased to 1.54 per cent, marking its lowest level since 2017, while the Reserve Bank of India retained the repo rate at 5.5 per cent and revised the FY26 GDP growth forecast to 6.8 per cent, PL Asset Management said in its report.
The rupee held steady at Rs88.76 to the US dollar despite a firmer dollar index, underscoring currency stability in a period of global volatility.
At the same time, industrial activity showed further strength, with the manufacturing PMI jumping to 59.2 from 57.7 in September, and domestic liquidity remained robust as SIP inflows touched an all-time high of Rs 29,361 crore. “This stability was complemented by buoyant festive-season consumption, which generated record sales of over $67 billion across automobiles, electronics, and consumer durables,” said the report.
A key theme emerging through October was the stabilisation of India’s corporate earnings cycle. Earnings downgrades, which had pressured market sentiment in earlier quarters, have now largely bottomed out.
