The Nifty managed to hold above the 23,200 mark despite a relatively subdued market breadth, with midcaps marginally underperforming. The Nifty Bank was among the key supports, gaining 498 points to 56,292, while the Nifty Midcap index slipped four points to 60,874.
Financials and FMCG stocks led the recovery, with IT emerging as a key drag. Four of the top five Nifty losers were from the IT space, including TCS, Wipro, Infosys and Tech Mahindra. On the other side, ITC, SBI and Axis Bank were among the biggest contributors to the Nifty’s gains.
Insurance stocks saw strong buying at lower levels, with HDFC Life and SBI Life gaining around 3% each. The move came after a CNBC-TV18 report that the IRDAI’s upcoming consultation paper on insurance commissions and distribution is likely to be directional, with specific commission and expense limits expected to be discussed with the industry later.
Among individual movers, Patanjali Foods surged 7% on heavy volumes, while PB Fintech gained 5% after reports on the IRDAI commission paper. The insurance distribution space remained in focus as investors assessed the potential impact of changes to commission structures.
Payment stocks also remained active after the new UPI Merchant Discount Rate framework. Paytm rose 4%, while Pine Labs slipped 4% as investors booked profits after the initial reaction to the return of MDR. The new framework introduces a 0.4% MDR on eligible UPI person-to-merchant transactions above ₹2,000 from October 15, capped at ₹300, while customers continue to use UPI free of charge.
Gold financiers ended largely higher, with Muthoot Finance gaining around 2%. Among midcaps, Premier Energies, Kalyan Jewellers, Nippon Life and Sona BLW were among the notable laggards.With the three-day slide now broken, market focus shifts to the US Federal Reserve‘s FOMC meeting and the policy signals around rates, inflation and the global interest-rate outlook.
Rupee at close: The rupee ended unchanged at 95.96 against the US dollar.
