Mumbai | October 01, 2025, 12:00 IST — Filed via NSE/BSE market data
Indian equity benchmarks ended lower on Tuesday as traders remained cautious ahead of the Reserve Bank of India’s (RBI) monetary policy meeting, scheduled for later this week. With global markets subdued and foreign outflows persisting, sentiment on Dalal Street stayed fragile.
Indices Slip Ahead of Policy
The Nifty 50 closed at 25,020.85, down 0.5%, while the Sensex fell 0.4% to 81,650.45. Both indices extended losses for the second straight session, erasing part of Monday’s mild rebound.
Broader markets underperformed, with the Nifty Midcap 100 down 1% and small-caps sliding nearly 1.3%, reflecting risk-off positioning.
Policy Cues in Focus
The RBI’s policy outcome, due later this week, is the biggest trigger for traders.
- Rate Expectations: Most analysts expect the central bank to hold the repo rate steady at 6.50%, but commentary on inflation and liquidity will be closely tracked.
- Liquidity Trends: System liquidity has tightened in recent weeks, leading to speculation about temporary liquidity infusion measures.
- Growth vs Inflation Balance: Traders will watch if RBI tilts toward a growth-supportive stance amid slowing industrial activity.
“Markets are on wait-and-watch mode. The tone of RBI’s forward guidance will be more important than the rate decision itself,” said a dealer at a domestic brokerage.
Sectoral Snapshot
- Banks: Nifty Bank index slipped 0.6%, with HDFC Bank and Kotak under pressure, though PSU banks traded flat.
- IT stocks: Showed resilience, with Infosys and TCS inching up on stable US cues.
- Metals: Corrected nearly 1.2%, tracking weakness in global commodity prices.
- FMCG: Remained muted amid reports of sluggish rural demand.
Global & FII Flows
Global markets offered little support, with Asian equities mostly lower and European futures pointing to a weak open. The dollar index held firm, while crude prices stayed volatile near $88 per barrel.
Foreign Institutional Investors (FIIs) continued to sell Indian equities, extending outflows into the last week of September. Provisional data showed FIIs sold shares worth ₹1,250 crore on Tuesday, further weighing on sentiment.
Outlook
- Near-Term: Benchmarks are likely to remain range-bound until the RBI’s decision.
- Levels to Watch: Nifty support is seen near 24,950, with resistance at 25,300.
- Triggers: Apart from policy, traders will eye September auto sales data and global crude trends.
Market analysts say volatility could spike around the RBI event, and advise traders to hedge positions. “The street wants clarity on liquidity tools and inflation trajectory. That will set the tone for October,” an analyst at a global investment bank noted.
Also read : RBI Retains Overnight Call Rate As Policy Anchor In Revised Liquidity Framework – Ebharat.com
