CHENNAI: Indian equity markets opened the week on a cautious note, with benchmark indices trading slightly lower as investors paused for breath ahead of a crucial global trigger. The Nifty 50 and BSE Sensex both dipped around 0.4 percent in early trade, while mid-cap and small-cap segments also showed modest declines. Most major sectors were weak, with only a handful such as IT and media showing limited resilience.
Around 12:00 noon, the BSE Sensex hovered in the 85,390–85,400 range, while the NSE Nifty 50 traded around 26,000–26,060. Both indices eased slightly from their opening levels as investors turned cautious amid mixed global signals.
The prevailing mood of caution reflects growing investor focus on the upcoming decision by the Federal Reserve — a rate cut is widely expected in its meeting later this week, but uncertainty persists as policymakers remain divided. Many participants are hesitant to commit fresh capital until the global macro picture becomes clearer. At the same time, worries over a sluggish rupee and persistent foreign outflows have weighed on sentiment for domestic equities.
Among individual names making headlines, the stock of the country’s largest airline dropped notably after regulators issued a show-cause notice in the wake of recent mass flight cancellations, adding to jitters in the broader travel-related space. In contrast, some rate-sensitive sectors that had gained after the recent domestic rate cut — triggered by the Reserve Bank of India’s latest policy move — are holding up comparatively better than the market as a whole.
Even as markets tread water today, the backdrop remains complex. Domestic liquidity and the RBI’s recent easing are supportive, but the uncertainty around global interest rates, the direction of foreign flows and currency volatility leave room for sharp swings. For investors, this means selective stock-picking may matter more than broad-based bets — those companies with strong fundamentals or exposure to export earnings may weather the turbulence better than others.
Overall, market analysts say, Monday’s market action reflects a wait-and-watch stance by investors — cautious optimism mingling with global uncertainty. The coming days, particularly the Fed decision and developments in currency and foreign-flow trends, are likely to shape near-term direction on Dalal Street, they said in their reports.