Indian Stock Market Today: Post-RBI Policy Reaction, Weekly Expiry Cues & Trading Plan (Oct 8)

Good morning, investors! It is Thursday, October 8, 2026. Following the pivotal Reserve Bank of India (RBI) Monetary Policy announcement yesterday, the Indian equity markets now face the volatility of weekly options expiry day. Here is your comprehensive Indian stock market morning update, key stocks in focus, and strategic trading plan for today.

1. Market Opening Cues & Post-RBI Sentiment

Domestic indices (BSE Sensex and NSE Nifty 50) have kicked off Thursday’s session navigating mixed signals as traders fully digest the RBI’s policy commentary alongside weekly derivative contract expiries:

• Digestive Phase: After yesterday’s rate-pause decision and measured commentary from the MPC, financial markets are adjusting to steady liquidity conditions and persistent food-inflation monitoring.
• Global Backdrop: Overnight cues from Wall Street remained steady as US Treasury yields stabilized. Asian equities are trading with modest gains, helping support benchmark sentiment in Mumbai.
• Commodities & Currency: Brent crude is trading in a consolidated band near $77–$78 per barrel, keeping imported inflation in check, while the Indian Rupee remains resilient against the US Dollar.

2. Key Stocks and Sectors in Focus Today

With corporate India gearing up for the Q2 FY27 earnings season kicking off next week, sector-specific stock picking is taking center stage:

• Large-Cap Banks (HDFC Bank, ICICI Bank, SBI): Rate-sensitive lenders remain in the spotlight as net interest margin (NIM) expectations stabilize following the RBI’s steady policy rates. Bank Nifty expiry positioning will heavily dictate afternoon market direction.
• IT Heavyweights (TCS, Infosys, HCL Tech): With Q2 earnings season right around the corner, IT bellwethers are seeing defensive accumulation and selective positioning by institutional desks.
• Auto & Consumer Discretionary (Tata Motors, M&M, Maruti Suzuki): As festive deliveries ramp up ahead of Navratri and Dussehra, automotive sales momentum and favorable financing rates remain key catalysts.
• Real Estate (DLF, Godrej Properties, Macrotech): Sustained interest-rate stability keeps demand outlook strong for luxury and mid-segment residential projects across tier-1 and tier-2 corridors.

3. Strategic Trading Plan: Navigating Expiry Volatility

Thursday expiries often present aggressive two-way price action. Intraday traders should stick to strict risk-management principles:

1. Mind the Nifty 50 Key Levels: Immediate intraday support is pegged around the 22,450 – 22,500 zone. On the upside, a sustained breakout above 22,650 – 22,700 will be essential to trigger aggressive short-covering.
2. Watch Bank Nifty Weightage: Bank Nifty remains the primary engine for broader market sentiment. Watch the 51,200 level closely for directional breakout cues.
3. Avoid Chasing OTM Options: Given high time decay (Theta) on expiry day, traders should avoid naked buying of out-of-the-money (OTM) options. Favor structured multi-leg spreads or wait for clear price consolidation before taking intraday directional setups.
4. Pre-Earnings Caution: Do not overleverage overnight momentum positions ahead of next week’s major corporate earnings announcements.

Disclaimer: This market update is published for informational and educational purposes only and should not be construed as investment or financial advice. Consult a certified financial advisor before making investment decisions.