Daily Market Updates: RBI Rate Hike, Smallcap Risks & Mega IPOs

The Indian markets faced immense volatility today, driven by a surprise policy shift from the RBI, rising concerns over smallcap liquidity, and major corporate announcements. Here is your daily wrap-up.

1. RBI Rate Hike Impact

The Reserve Bank of India (RBI) raised the repo rate by 25 basis points—its first rate hike in nearly four years. This moves its policy stance to "calibrated tightening" and has immediately pushed Indian 10-year bond yields to a multi-month peak.
Sources: Economic Times, Reuters

2. Smallcap Margin Trading Warning

Zerodha founder Nithin Kamath flagged severe liquidity risks today. He noted that about half of India’s Margin Trading Facility (MTF) book is heavily concentrated in small-cap stocks, raising concerns of a potential domino effect if a market correction triggers margin calls.
Sources: Zerodha Pulse, Economic Times

3. Jio Platforms IPO Roadshow

Reliance's massive Jio Platforms IPO—pegged at an astonishing ₹37,700 crore mega-issue with a price band set at ₹1,065–₹1,119 per share—is drawing heavy scrutiny. Fund managers are questioning the ambitious valuations during the current global macroeconomic climate.
Sources: Moneycontrol, Zerodha Pulse

4. Q2 Corporate Earnings & Dividends

It wasn't all macroeconomic gloom. TCS reported a stellar 15% YoY rise in Q2 net profit, reaching ₹13,884 crore, and immediately declared a second interim dividend of ₹12 per share. Following suit, Poonawalla Fincorp and Anand Rathi Wealth also posted incredibly strong quarterly scorecards.
Source: Economic Times

5. Rupee & FII Outflows

The Indian rupee slipped to a multi-month low near 96.50+ against the U.S. dollar. This depreciation comes on the back of relentless selling by Foreign Institutional Investors (FIIs), who have pulled tens of thousands of crores out of the Indian equities market this month.
Sources: The Hindu

6. Upcoming SME & Mainline IPOs

Despite market turbulence, the primary market remains red hot. Zetwerk is weighing a massive ₹5,000 crore IPO, while Fusion CX officially locked its ₹702 crore IPO price band ahead of its October 14 opening.
Source: Economic Times