CHENNAI: Indian equity markets ended lower on Tuesday, September 30, as investor caution persisted ahead of the Reserve Bank of India’s upcoming monetary policy announcement. The trading session saw mixed movements across sectors, with gains in banks and metals offset by weakness in IT and automobile stocks.
The BSE Sensex closed at 80,267, down 97 points or 0.12 percent, while the NSE Nifty 50 ended at 24,611, lower by 23 points or 0.09 percent. Broader indices, including midcap and smallcap stocks, were largely flat, reflecting a cautious stance among investors.
Public sector banks were the standout performers, rising nearly 1.8 percent on expectations of easier credit norms and regulatory support from the central bank. Metal stocks gained close to 1 percent, supported by a softer US dollar that boosted commodity-linked counters. In the IT space, Coforge advanced 2.6 percent after receiving positive analyst ratings, though other export-driven IT names remained under pressure amid concerns over rising US visa fees and global demand uncertainty. Automobile shares including Hyundai and IndiGo declined by about 2 percent each, dragged down by weak demand trends and higher fuel costs.
The market extended its losing streak to eight consecutive sessions, underscoring weak sentiment. Foreign institutional investors continued their selling spree, with September outflows amounting to around $2.55 billion, adding pressure on equities. Domestic investors are now awaiting the RBI’s policy outcome scheduled for October 1 for clarity on interest rate direction and credit flow measures.
Recent regulatory steps announced by the RBI, including faster transmission of policy rates, relaxed gold loan norms, weekly credit bureau reporting, and eased large credit exposure rules, are intended to improve liquidity and lending conditions. Analysts believe these changes could provide medium-term support to the banking sector and other credit-sensitive industries.
On the technical front, the Nifty 50 faces resistance near the 25,000 mark, while strong support lies around 24,400. A decisive move above 25,000 will be critical to signal a short-term rebound. Market rotation has become more apparent, with flows shifting toward banks and metals, while IT and auto stocks remain under pressure. Global factors, such as US rate expectations, currency volatility, and trade-related developments, continue to weigh on sentiment and keep volatility high.
Looking ahead, the market is expected to remain range-bound in the near term. The RBI’s policy decision and global market cues will be the key drivers for direction. Positive policy signals or easing of global uncertainties could help lift sentiment, while continued foreign selling remains a risk.