RBI keeps repo rate unchanged, India-EFTA trade deal, & more -Groww Digest
Wednesday, 1 October 2025
Markets opened above yesterday’s closing point.
Nifty 50 rose throughout the day and closed in the green. The rise may have been driven by the RBI’s decision to keep repo rates unchanged. The positive sentiment was supported by rise in large banks/financials stocks.
All sectors’ stocks rose today except for the PSU bank stocks. Media stocks and private bank stocks rose the most.
Global markets: US markets and most Asian markets rose. Most European markets rose (as of 6 pm IST).
News
The RBI kept the repo rate unchanged at 5.5%.
India’s trade agreement with the European Free Trade Association (EFTA) came into force today (1 Oct 2025). It includes a commitment of a $100 billion investments from the EFTA bloc over 15 years and tariff concessions on some goods from both sides.
The central government approved a 3% increase in the Dearness Allowance for government employees and pensioners, applicable from 1 July 2025.
The central government approved 57 new Kendriya Vidyalayas (KVs) across India, with an estimated cost of Rs 5,862.55 crore over 9 years.
The central government approved the widening of Kalibor-Numaligarh NH-715 in Assam to a four-lane highway, at a cost of Rs 6,957 crore.
India’s GST collection rose 9.1% year-on-year in Sept (vs 6.5% in Aug) to Rs 1.89 lakh crore.
India’s manufacturing PMI fell to 57.7 in Sept (vs 59.3 in Aug). This means manufacturing activity rose less in Sept than in Aug.
Epack Prefab Technologies IPO listed on the stock exchanges at a loss of 9.88% on its issue price and closed 6.54% down at the end of the day
Jain Resource Recycling IPO listed on the stock exchanges at a premium of 14.25% over the issue price and closed 37.09% up at the end of the day.
Stocks Updates
Shree Cement: commissioned a 3.65 MTPA clinker unit at its integrated cement plant in Jaitaran, Rajasthan.
Shriram Finance: raised Rs 500 crore via non-convertible debentures maturing in Sept 2028.
Tata Motors: fixed 14 Oct as the record date to allot 1 share for TML Commercial Vehicles Ltd (the demerged commercial vehicle company) for every 1 share held of Tata Motors.
Waaree Energies: started operations of a new 950 MW solar module manufacturing line at its Degam, Gujarat plant.
Power Grid: won a project to build a 765 kV transmission line linking Southern and Western grids across Karnataka and Maharashtra.
Word of the Day
Repo Rate
It is the interest rate at which the RBI lends money to banks for the short term.
When banks need funds, they borrow from the RBI.
If the RBI raises the repo rate, banks have to pay more interest. This in turn, makes loans (home loans, car loans, business loans) costlier for people too.
Similarly, if the RBI reduces the repo rate, borrowing gets cheaper for banks, and they can give loans at lower rates, encouraging spending and investment.
It is a tool the RBI uses to control inflation in the economy.
6 Day Course
Theme: thematic funds
Day 3: Wednesday
Most mutual funds aim for diversification. Which means, they try to reduce risk by investing in many different kinds of investments.
This reduces risk but also prevents very high returns.
Very high returns and diversification are on opposite ends of the spectrum.
Sector funds and thematic funds do the opposite of what most mutual funds do — they try to concentrate their investments.
This leads to much higher risk. But it can lead to very high returns if the fund manager makes good choices.
It is because of this concentrated investment that these mutual funds are considered unsuitable for most investors.
Most equity mutual funds invest in anywhere from 60-90 stocks at a time.
Sectoral funds and thematic funds may invest in as little as 20 stocks (based on market conditions).
Featured Question
“Can you explain what are the types of gold investment we have in the market and how can we analyse compared to the physical gold investment”
There are some platforms that let you invest in gold digitally.
This means that you will not have to deal in physical gold. Gold will automatically be stored in a vault in your name.
Some investment platforms allow you to even take physical delivery of this gold if you want to.
Gold ETFs and gold mutual funds are another way to invest in gold.
Similar to the previous option, ETFs and gold mutual funds let you invest in gold without having to deal with physical gold.
SGB or Sovereign Gold Bonds are yet another way to invest in gold without taking physical delivery of gold.
SGBs are offered by the RBI.
The price movement of physical gold and that of the above listed options usually move in tandem with minor differences.
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