The key domestic indices ended with substantial gains on Monday. The Nifty settled above the 25,100 level. The S&P BSE Sensex jumped 591.69 points or 0.73% to 81,973.05. The Nifty 50 index added 163.70 points or 0.66% to 25,127.95. 
In the broader market, the S&P BSE Mid-Cap index gained 0.28% and the S&P BSE Small-Cap index rose 0.06%. The market breadth was positive. 

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, slipped 1.70% to 13. 

Among the sectoral indices, the Nifty Realty index (up 1.61%) the Nifty IT index (up 1.27%), and the Nifty Bank index (down 1.26%) outperformed the Nifty 50 index. 

Meanwhile, the Nifty Media index (down 1%), the Nifty Metal index (down 0.28%) and the Nifty Oil & Gas index (down 0.14%) underperformed the Nifty 50 index. 

Economy : 

The annual rate of inflation based on all India Wholesale Price Index (WPI) number stood at 1.84% (Provisional) for the month of September, 2024 (over September, 2023). Positive rate of inflation in September, 2024 is primarily due to increase in prices of food articles, food products, other manufacturing, manufacture of motor vehicles, trailers & semi-trailers, manufacture of machinery & equipment, etc. Inflation stood at 1.31% on year in August. 

Primary Articles index increased by 0.41% to 195.7 (provisional) in September, 2024 from 194.9 (provisional) for the month of August, 2024. Fuel & Power index declined by 0.81% to 146.9 (provisional) in September, 2024 from 148.1(provisional) for the month of August, 2024. Manufactured Products index for this major group increased by 0.14% to 141.8 (provisional) in September, 2024 from 141.6(provisional) for the month of August, 2024. 

The Food Index consisting of 'food articles' from primary articles group and 'food product' from manufactured products group increased from 193.2 in August, 2024 to 195.3 in September, 2024. The annual rate of inflation based on WPI Food Index increased from 3.26% in August, 2024 to 9.47% in September, 2024. 

Meanwhile, India’s forex reserves dropped by $3.709 billion to $701.176 billion for the week ended October 4, the RBI said on Friday. In the previous reporting week, the reserves had jumped by $12.588 billion to an all-time high of $704.885 billion. 

The foreign currency assets, a major component of the reserves, decreased by $3.511 billion to $612.643 billion, the data released on Friday showed. 

Gold reserves decreased by $40 million to $65.756 billion during the week, the RBI said. 

The Special Drawing Rights (SDRs) were down by $123 million to $18.425 billion. India’s reserve position with the IMF was down by $35 million to $4.352 billion in the reporting week, the apex bank data showed. 

Numbers to Track: 

The yield on India's 10-year benchmark federal paper advanced 1.55% to 6.893 as compared with previous close 6.788. 

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 84.0600, compared with its close of 84.1050 during the previous trading session. 

MCX Gold futures for 31 October 2024 settlement shed 0.06% to Rs 75,691. 

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.14% to 103.04. 

The United States 10-year bond yield gained 1.14% to 4.118. 

In the commodities market, Brent crude for November 2024 settlement lost $1.93 or 2.44% to $77.11 a barrel. 

Global Markets: 

Most Europeans shares declined on Monday. Asian stocks ended higher as investors assessed China’s weekend press briefing and awaited a slew of economic data this week from the region. 

China's finance ministry detailed plans for increased government debt issuances and support for provincial governments. However, the lack of specific details, particularly regarding the scale and timing of the measures, caused some disappointment. Analysts expressed concerns about the potential for a significant increase in government debt. 

Economic data from China highlighted ongoing weakness. China's consumer price index (CPI) rose 0.4% from a year earlier last month, against a 0.6% rise in August. CPI was unchanged month-on-month, versus a 0.4% gain in August and below an estimated 0.4% increase. Meanwhile, the producer price index (PPI) fell 2.8% year-on-year in September, versus a 1.8% decline the previous month. 

Asian markets drew support from the positive performance of US stocks on Friday. The S&P500 rose 0.61% to a record high of 5,815.03 points, while the Dow Jones surged nearly 1% to a record high of 42,863.86 points. The Nasdaq lagged, rising 0.3% to 18,342.94 points. Positive earnings from major banks helped investors look past questions over whether the Federal Reserve will cut interest rates in November. 

The Producer Price Index (PPI) for final demand in the US rose 1.8% on a yearly basis in September. This reading followed the 1.9% increase recorded in August. The US consumer price index for all urban consumers rise by 0.2% month on month (MoM) on a seasonally-adjusted basis in September, the same rise as in August and July. 

This week, investors will focus on additional third-quarter earnings reports and statements from Federal Reserve officials.