India’s Equity Benchmarks Rise After Seven-Day Losing Streak

Market Update at 10:15 AM: India’s equity benchmarks opened higher on Tuesday, following seven consecutive sessions of decline. The gains were supported by high-weight financial stocks after the Reserve Bank of India (RBI) eased lending norms, while metal stocks rose amid a weaker USD.

The Nifty 50 was up 0.38 per cent at 24,725.15, while the BSE Sensex added 0.37 per cent to 80,648.72, as of 9:22 a.m. IST.

High-weight financials and banks gained 0.5 per cent each, while private banks rose 0.6 per cent. The uptick followed the RBI’s move to ease lending norms while tightening oversight, ahead of its monetary policy decision scheduled for Wednesday. 

Metals advanced 1 per cent, emerging as the top sectoral gainers, supported by a weaker USD and concerns over global supply. A weaker USD makes metals cheaper for holders of other currencies, boosting demand.

The broader Small-Cap and Mid-Cap indices also gained, with small-caps rising 0.2 per cent and mid-caps up 0.3 per cent.

Pre-Market Update at 7:35 AM: On Tuesday, September 30, equity benchmark indices Sensex and Nifty 50 are expected to see a muted start, tracking mixed global market signals. At 7:13 AM, the GIFT Nifty was quoting at 24,692, up by 6 points. The impact of recent global policy actions has eased slightly; however, persistent foreign fund outflows and caution ahead of the Reserve Bank of India’s policy meeting continue to weigh on sentiment.

On Monday, September 29, Foreign Institutional Investors (FIIs) were net sellers, offloading equities worth Rs 2,831.59 crore, taking total September outflows to Rs 32,973.27 crore. In contrast, Domestic Institutional Investors (DIIs) remained net buyers for the 25th consecutive session, purchasing equities worth Rs 3,845.87 crore.

Indian equities opened higher on Monday but slipped due to profit booking, marking the seventh straight day of decline. The Nifty 50 ended 19.80 points lower at 24,634.90, while the Sensex fell 61.52 points to close at 80,364.94. Oil and gas marketing companies provided support, with the Nifty Oil & Gas index gaining 1.35 per cent and the Nifty PSE index rising 1.17 per cent, led by Petronet LNG, BPCL, HPCL, and Indian Oil. India’s IIP rose 4 per cent year-on-year in August, higher than July’s 3.5 per cent but below the 5 per cent forecast.

In the US, Wall Street closed higher on Monday, driven by technology stocks. The Dow Jones Industrial Average rose 68.78 points to 46,316.07, the S&P 500 gained 17.51 points to 6,661.21, and the Nasdaq advanced 107.09 points to 22,591.15. Optimism around artificial intelligence and expectations of continued Fed rate cuts supported sentiment. Asian markets traded mixed in early Tuesday trade, while China’s factory activity contracted for the sixth straight month with a manufacturing PMI of 49.8, still below the 50 threshold. Minutes from the Bank of Japan’s September meeting showed discussions on possible rate hikes.

US President Donald Trump announced new import tariffs of 10 per cent on lumber and 25 per cent on vanities, kitchen cabinets, and upholstered wooden furniture starting October 14. From January 1, 2026, tariffs will rise further, with up to 50 per cent duties on imports from countries without trade agreements. Meanwhile, Vice President JD Vance warned that the US is likely heading toward a government shutdown, as talks between President Trump and Democratic leaders showed little progress.

Gold surged in Asian trade, with spot gold up 0.42 per cent at USD 3,848.98 per ounce. On MCX, gold futures rose 1.46 per cent to Rs 1,15,448 per 10 gm, hitting a record high of Rs 1,15,595. Crude oil extended losses, with WTI futures near USD 63 per barrel and Brent below USD 67. The US dollar index eased to 97.948 as investors remained cautious ahead of a potential US government shutdown.

For today, RBL Bank and Samaan Capital will remain on the F&O ban list.

Disclaimer: The article is for informational purposes only and not investment advice.