Indian equity benchmarks began the week on a positive note as the Reserve Bank of India’s Monetary Policy Committee (MPC) convened for its three-day meeting to deliberate on the repo rate.
At 9:22 AM, the Sensex gained 108 points (0.14%) to trade at 80,534, while the Nifty rose 30 points (0.12%) to 24,685.
Broader market indices also showed strength, with the Nifty Midcap 100 up 0.54% at 56,680, and the Nifty Smallcap 100 advancing 0.51% to 17,651, reflecting renewed investor interest in mid- and small-cap counters.
Most sectoral indices traded in the green, led by auto, IT, PSU bank, pharma, metal, realty, and energy. However, FMCG and private bank indices saw mild declines.
In the Sensex pack, BEL, Titan, Tata Steel, Trent, M&M, Tata Motors, Infosys, Sun Pharma, TCS, SBI, and Power Grid were among the leading gainers. On the other hand, HUL, Axis Bank, L&T, Maruti Suzuki, Bharti Airtel, ITC, and HCL Tech registered losses.
Monetary Policy Expectations
Analysts widely expect the RBI’s MPC to maintain the repo rate at 5.50% as its meeting begins on Monday.
Economists note that the current growth-inflation dynamics do not warrant a rate cut, and the central bank is likely to adopt a dovish tone to sustain economic momentum.
Analysts predict the policy outcome on October 1 will largely align with expectations, with no major surprises in stance.
Market strategists advised gradual accumulation in large-cap stocks across sectors such as automobiles, banking, telecom, capital goods, and cement, citing resilience and earnings visibility.
They also noted that pharmaceutical stocks, currently witnessing weakness, could offer attractive entry points, as India’s generic exports remain unaffected by recent US tariff measures.
Foreign Institutional Investors (FIIs) continued their selling streak for the fifth consecutive session on September 26, offloading equities worth ₹5,687 crore.
In contrast, Domestic Institutional Investors (DIIs) countered the pressure by purchasing ₹5,843 crore worth of shares, helping stabilise market sentiment.
With the RBI policy decision due shortly, traders are expected to maintain a cautious yet optimistic stance. Stable interest rates and supportive policy signals could further boost investor confidence and sustain momentum in key sectors.
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