Post Session: Quick Review

Indian equity benchmarks ended in negative territory with minor losses on Tuesday, with both the Nifty and Sensex extending their losing streak for a third consecutive session amid concerns over a potential hike in H-1B visa costs by the U.S.  After making a cautious start, soon market slipped into red, as traders remained cautious amid ongoing trade talks with the U.S. and escalating tensions in Europe and the Middle East. In afternoon session, markets managed to recover initial losses, but ultimately closed in red. 

Some of the important factors in trade:

India’s flash composite PMI falls to 61.9 in September: Sentiments were weak after the HSBC Flash India Composite Output Index, which measures the combined performance of India’s manufacturing and service sectors, fell to 61.9 in September from 63.2 in August. 

Foreign fund outflows: Sentiments remained downbeat as the foreign investors offloaded shares worth Rs 2,910 crore on a net basis on September 22.

Output of eight key infrastructure sectors hits 13-month high of 6.3% in August: Traders overlooked Ministry of Commerce & Industry in its latest data has showed that the output of eight key infrastructure sectors jumped to a 13-month high of 6.3 per cent in August 2025 on account of expansion in coal, steel, and cement production.

Global front: European markets were trading in green, after a measure of Eurozone business activity hit a 16-month high in September. Asian markets ended mostly in green amid expectations of further interest rate cuts by the US Fed. 

The BSE Sensex ended at 82102.10, down by 57.87 points or 0.07% after trading in a range of 81776.53 and 82370.38. There were 12 stocks advancing against 18 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index was down by 0.29%, while Small cap index down by 0.35%. (Provisional)

The top gaining sectoral indices on the BSE were Metal up by 0.97%, Bankex up by 0.69%, Auto up by 0.61%, PSU up by 0.48% and Telecom up by 0.38%, while FMCG down by 1.28%, Realty down by 0.89%, Consumer Durables down by 0.66%, IT down by 0.63% and TECK down by 0.63% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Axis Bank up by 2.21%, Bajaj Finance up by 1.94%, Maruti Suzuki up by 1.83%, SBI up by 1.81% and Kotak Mahindra Bank up by 1.55%. On the flip side, Trent down by 2.34%, Tech Mahindra down by 2.07%, Hindustan Unilever down by 1.94%, Ultratech Cement down by 1.90% and Asian Paints down by 1.42% were the top losers. (Provisional)

Meanwhile, Chief Economic Adviser (CEA) V Anantha Nageswaran has said that the government would stick to its 4.4 per cent fiscal deficit target and restrict market borrowing at the estimated Rs 6.82 lakh crore in the second half of the current fiscal year (H2FY26). The government had announced borrowing Rs 8 lakh crore through dated securities during the April-September period of 2025-26 to fund the revenue gap. The Union government, in consultation with the Reserve Bank of India is expected to announce a borrowing calendar for the second half (October-March) during this week.

Fiscal deficit - the gap between the government's total revenue and total expenditure -- is estimated to be 4.4 per cent of GDP for FY26 as compared to 4.8 per cent of the GDP revised estimated for the FY25. To fund fiscal deficit, the government resorts to market borrowings. Out of gross market borrowing of Rs 14.82 lakh crore estimated for 2025-26, Rs 8 lakh crore, or 54 per cent, is planned to be borrowed in the first half (H1) through issuance of dated securities, including Rs 10,000 crore of Sovereign Green Bonds (SGrBs). In absolute terms, the fiscal deficit is pegged at Rs 15,68,936 crore for the financial year 2025-26. To finance the fiscal deficit, the net market borrowings from dated securities are estimated at Rs 11.54 lakh crore. The balance financing is expected to come from small savings and other sources.

Nageswaran further said India's FY26 GDP growth will tend towards the upper end of 6.3-6.8 per cent range in FY26, following the GST 2.0 reforms that came effect from September 22, 2025. He said ‘The GST 2.0 is a very significant landmark reform. I am very confident that it will provide a very significant boost to domestic demand. Coming on top to the indirect taxes are the concessions and relief announced as part of the Union Budget. Taking a multiplier effect, these will quite definitely boost the GDP numbers’. He added that the total impact of the multiplier effect due to direct tax relief (income tax cuts) and indirect tax relief (GST rate cuts) on the economy will be more than Rs 2.5 lakh crore, though some other uncertainties may dilute the effect. 

The CNX Nifty ended at 25169.50, down by 32.85 points or 0.13% after trading in a range of 25084.65 and 25261.90. There were 19 stocks advancing against 31 stocks declining on the index. (Provisional)

The top gainers on Nifty were Indusind Bank up by 2.85%, Axis Bank up by 2.31%, JSW Steel up by 1.92%, Bajaj Finance up by 1.89% and SBI up by 1.79%. On the flip side, Trent down by 2.38%, Tech Mahindra down by 2.23%, SBI Life Insurance down by 2.06%, Ultratech Cement down by 1.97% and Hindustan Unilever down by 1.94% were the top losers. (Provisional)

European markets were trading higher; France’s CAC rose 47.39 points or 0.61% to 7,877.50, Germany’s DAX gained 55.65 points or 0.24% to 23,582.70 and UK’s FTSE 100 increased 6.87 points or 0.07% to 9,233.55.

Asian markets settled mostly higher on Tuesday. Seoul shares climbed to a new high for the second consecutive session following Wall Street's record-breaking rally overnight as newly installed Fed governor Stephen Miran said rates should be below 3% by end of year and dismissed fears of US president's tariffs stoking inflation. Investors were awaiting Fed Chair Jerome Powell's speech and upcoming PCE Price Index data, the Federal Reserve's preferred inflation gauge, which is expected to signal subdued price pressures. However, Hong Kong shares fell after PBoC governor Pan Gongsheng didn't announce any immediate policy changes. Meanwhile, Japanese market was closed for the national Autumnal Equinox holiday.