Reliance Industries — 100-point case study
What happened next (3 months): -9.8% vs Nifty 50 -6.0%
Every morning: the national and international news that moves Indian shares, explained by sector — and 10 new NSE/BSE stocks taken apart on 50 technical and 50 fundamental points, using data from 95 days ago, with what happened next.
What happened next (3 months): -9.8% vs Nifty 50 -6.0%
What happened next (3 months): -9.6% vs Nifty 50 -6.0%
What happened next (3 months): -4.7% vs Nifty 50 -6.0%
What happened next (3 months): -7.1% vs Nifty 50 -6.0%
What happened next (3 months): +3.5% vs Nifty 50 -6.0%
What happened next (3 months): +2.1% vs Nifty 50 -6.0%
What happened next (3 months): -6.0% vs Nifty 50 -6.0%
What happened next (3 months): -10.8% vs Nifty 50 -6.0%
What happened next (3 months): -10.9% vs Nifty 50 -6.0%
What happened next (3 months): -13.3% vs Nifty 50 -6.0%
No RBI policy decision was announced around 1 October; the Monetary Policy Committee meets on 5-7 October 2026. In a Business Standard poll, eight of ten respondents expect a 25 basis point hike from the current repo rate of 5.25%, which has been unchanged since the 125 bps of cuts in 2025. Retail inflation rose to 4.8% in August from 4.45% in July, and crude oil has stayed above $100 per barrel.
Why it matters: Policy rates set borrowing costs across the economy; a shift from cuts toward hikes usually raises loan rates and bond yields, which affects bank margins, demand for credit-funded purchases such as homes and vehicles, and the valuations investors assign to equities.
Brent crude closed at $102.31 a barrel on 1 October 2026, up $4.28, after reports that a third US aircraft carrier was heading to the Middle East. PetroChina also cancelled all October fuel shipments, tightening supply of finished products such as diesel. Separately, the US rejected Iran's seven-day ceasefire proposal in late September, and Iran says the Strait of Hormuz remains closed to unauthorised vessels.
Why it matters: India imports most of its crude oil, so higher prices tend to widen the trade deficit, pressure the rupee and push up inflation, while raising input costs for fuel-intensive industries and lifting realisations for upstream oil producers.
The US 10-year Treasury yield crossed 5.30%, its highest level since 2002. US PCE inflation came in at 3.4% year-on-year (core PCE 3.0%), slightly cooler than expected, which markets read as delaying any further Fed rate hike to December.
Why it matters: Higher yields on US government bonds make low-risk dollar assets more attractive relative to emerging markets, which can pull foreign portfolio money out of Indian equities and bonds and weaken the rupee; they also raise the discount rate used to value growth stocks.
Indian benchmark indices fell for an eighth straight week, their longest losing streak in 25 years. Foreign portfolio investors sold shares worth Rs 10,148 crore on Wednesday 30 September alone, taking year-to-date selling to about $27.8 billion. The report cited Brent above $100 and the US 10-year yield at 5.34% as the main pressures; IT was the main sector to gain.
Why it matters: Sustained foreign outflows add selling pressure to large, liquid stocks and weaken the rupee; domestic institutional and SIP flows often absorb part of the selling, so the balance between the two is a key driver of market direction.
The rupee weakened to 95.95 per US dollar on 1 October 2026, pressured by high US Treasury yields and elevated oil prices. The RBI has been selling dollars to defend the 96.00 level, and India's foreign exchange reserves fell by $15 billion in the week ending 18 September 2026.
Why it matters: A weaker rupee raises the cost of imports such as crude oil, electronics and capital goods, adding to inflation, while boosting the rupee value of export earnings for sectors that bill in dollars.