Key indices end marginally lower on Tuesday

Indian equity benchmarks closed marginally lower on Tuesday in a volatile trade, dragged by selling in FMCG and Realty shares and foreign fund outflows amid concerns over the steep hike in US H-1B visa fees. Foreign institutional investors (FIIs) offloaded equities worth Rs 2,910.09 crore on Monday, according to exchange data. 

Some of the important factors in trade:

S&P retains India’s GDP growth forecast at 6.5%: S&P Global Ratings has retained India's GDP growth forecast at 6.5 per cent in the current fiscal, citing strong domestic demand amid a largely benign monsoon. It also expects a 25 bps rate cut by the RBI this fiscal as it revised its inflation forecast down to 3.2 per cent for this fiscal year. 

Rupee slumps to hit an all-time low against US dollar: Indian rupee depreciated sharply to hit an all-time low against the US dollar, amid sustained outflow of foreign funds on the back of a steep hike in US H-1B visa fee that is expected to give a big blow to Indian IT services exports.

Market borrowing unchanged: 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. 

EPFO adds 21.04 lakh net members in July: Retirement fund body EPFO added 21.04 lakh net members during July 2025, registering an increase of 5.55 per cent year-on-year, according to the latest payroll data.

Global front: European markets were trading mostly in green as the HCOB Flash Eurozone Composite Purchasing Managers' Index, compiled by S&P Global, edged up to 51.2 in September from 51.0 in August, marking the ninth consecutive month of growth. Asian markets settled mostly higher as traders remained optimistic about the outlook for the markets amid expectations of further interest rate cuts by the US Fed.  

Finally, the BSE Sensex fell 57.87 points or 0.07% to 82,102.10 and the CNX Nifty was down by 32.85 points or 0.13% to 25,169.50.     

The BSE Sensex touched high and low of 82,370.38 and 81,776.53 respectively. There were 12 stocks advancing against 18 stocks declining on the index.  

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

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.

The top gainers on the Sensex were Axis Bank up by 2.32%, 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.

Meanwhile, a research report from the State Bank of India's Economic Research Department has said that there is merit and rationale for the Reserve Bank of India (RBI) to reduce the key benchmark lending rate by 25 basis points in the forthcoming monetary policy, as retail inflation is expected to remain benign even in the next financial year. The RBI has already reduced the repo rate by 100 basis points since February, amidst declining consumer price index (CPI) based inflation. After reducing the repo rate three times in a row, the RBI hit a pause button in August.

The RBI Governor-headed Monetary Policy Committee (MPC), which decides on the interest rate, is scheduled to meet on September 29 for a three-day deliberation. The decision will be announced on October 1. The report stated ‘There is merit and rationale in going for a September rate cut...This will but require calibrated communication by the RBI as post June, the bar for rate cut is indeed higher.’

Further, it said central bank communication is a crucial toolkit for monetary policy, and post-June policy, such communication has played a major role in yields hardening. It stated ‘But there is no point in committing a Type 2 error again (no rate cut with neutral stance) by not cutting rates in September as inflation will continue to remain benign even in FY27, and without a GST cut, it is tracking below 2 per cent in September and October.’

Moreover, it said the CPI for fiscal 2026-27 numbers are now tracking around 4 per cent or less, with GST rationalisation, October CPI could be closer to 1.1 per cent, the lowest since 2004. It noted that a rate cut in September is the best possible option for RBI, which also projects it as a forward-looking central bank.

The CNX Nifty touched high and low of 25,261.90 and 25,084.65 respectively. There were 19 stocks advancing against 31 stocks declining on the index.  

The top gainers on Nifty were Indusind Bank up by 2.82%, Axis Bank up by 2.24%, Bajaj Finance up by 1.93%, JSW Steel up by 1.87% and Maruti Suzuki up by 1.69%. On the flip side, Tech Mahindra down by 2.16%, Trent down by 2.11%, SBI Life Insurance down by 2.01%, Hindustan Unilever down by 1.84% and Nestle India down by 1.72% and were the top losers.

European markets were trading mostly in green; France’s CAC rose 51.69 points or 0.66% to 7,881.80 and Germany’s DAX gained 80.65 points or 0.34% to 23,607.70, while UK’s FTSE 100 decreased 0.61 points or 0.01% to 9,226.07.