Daily Market News Update — 06th-07th October 2026

Midnight News Update: 06-07 Oct 2026

It looks almost certain that the RBI will hike rates by 25-bps when it announces its monetary policy statement on 07-October. Markets will be more interested in the rate guidance, liquidity management, projections for inflation and GDP growth for FY27. The 25-bps rate hike will take the repo rates to 5.50%, well above the pre-COVID rates of 5.15%. A combination of rising bond yields in India and the US, elevated inflation, and a weak rupee make a strong case for a rate hike. There is an outside possibility of the stance being changed to “Calibrated Tightening.”

Jio Platforms is likely to hit the IPO market in the third week of October with an indicative valuation of around $114 billion. That will position Jio Platforms among the five most valuable companies in India. The IPO will entirely be a fresh issue with no offer for sale (OFS) component. Jio Platforms is India’s largest wireless operator with nearly 45% of wireless market share. Currently, Reliance is in the process of talking to key investors ahead of pricing the IPO. The IPO is expected to raise around ₹37,700 crore, making it India’s largest IPO by a mile. The listing is expected by 30-October.

A report by Motilal Oswal has underlined that the surge in FCNR(B) collections could impact NIMs. The inflow of $133 billion via FCNR(B) window, when swapped into rupee will be approximately 4.5% of system deposits. However, FCNR(B) funds are high-cost funds as the interest rates are high and the banks have to bear the hedging cost on the interest portion. The overall NIMs of banks are expected to compress by about 25 bps, with the impact sharper on private banks. However, the net interest income (NII) in FY27 is still expected to show growth of 11.9% yoy.

Trustees led by Noel Tata defended the restructuring of Tata Sons, by merging Tata Electronics and Tata Consulting Engineers. This will make Tata Sons a predominantly operating company. It also makes the NBFC tag redundant and saves the company from a mandatory listing. The proposal is yet to pass through the board and has to be approved by the RBI. Venu Srinivasan and Vijay Singh have openly spoken against the proposal, while Chandra has been more guarded in his response. This move was necessitated after RBI rejected Tata Sons’ proposal to surrender NBFC license.

The World Bank has raised the estimated GDP growth for FY27 by 50 bps from 6.6% to 7.1%. The World Bank cited India’s economic resilience; in the form of strong domestic consumption and robust industrial performance for the upgrade. The upgrade was also influenced by Q1FY27 GDP growth coming in at a healthy 7.8%. While private consumption will lead the growth, there are concerns like weak agriculture output and tepid rural demand. Even government spending is likely to remain subdued. It expects industrial growth to compensate for weak farm output.

The rupee hit another 2-month low of ₹96.43/$, despite the deluge of $133 billion coming from the FCNR(B) scheme. Clearly, there are concerns over servicing the debt and the massive $200 billion forward position that RBI is carrying. Oil has been a major irritant as it hovers above $100/bbl in the Brent market. One big question mark is over the rupee value and its likely impact on imported inflation and real growth. For now, the persistent FPI selling, elevated prices of crude, and risks of global central banks turning hawkish; have kept the rupee under pressure.

Pepsi, Coca Cola, and Reliance Consumer; the 3 major cola companies in India have got a reprieve from the Delhi Court. After the FSSAI had asked these colas to stop using the term “energy drink”, to describe its colas, they had approached the court for a stay. The court granted a stay to these companies since FSSAI had not given the other parties a chance to be heard. The soft drink market is expected to burgeon to $1.6 billion in size by the year 2028. FSSAI has pointed that Energy Drink label is misleading, but the cola companies do not want to lose out on festive sales.

While year 2026 has been robust for IPOs, with more than ₹1.12 trillion being raised, the big question is what are these funds being used for? Most companies have used bulk of their IPO funds to repay / prepay debt rather than to expand capacity, enhance capital buffers, or build the brand. Out of the ₹46,712 crore raised by way of fresh funds, nearly 39% was used for repaying debt. The corresponding figure for the first 9 months of 2026 was 32%. Analysts point out that using equity to repay debt is like saying equity is cheaper than debt, which is not true!