Key gauges end marginally lower on Monday

After altering between gains and losses, Indian equity benchmarks closed marginally lower on Monday, extending their downtrend to the seventh straight day, as TECK stocks were dragged by persistent foreign fund outflows ahead of the RBI's interest rate decision later this week. 

Some of the important factors in trade: 

FPIs remain net sellers: Foreign portfolio investors (FPIs) stayed net sellers of Indian shares for a fifth consecutive session on Friday. The overseas investors sold stocks worth approximately Rs 5,687.58 crore, according to exchange data. 

Government to borrow Rs 6.77 lakh crore in second half of FY26: The Government of India is planning to borrow Rs 6.77 lakh crore in the second half of the fiscal year 2025-26 through dated securities, including Rs 10,000 crore through issuance of Sovereign Green Bonds (SGrBs).

High tariffs imposed by US on Indian goods pose major risk to country's growth: Crisil Intelligence in its report has said that high tariffs imposed by the United States (US) on Indian goods pose a major risk to the country's growth. It added that the tariffs will impact both Indian goods exports and investments.

RBI rate cut likely: A SBI research report has pitched for a 25-bps rate cut, saying it is the best possible option for the RBI as retail inflation is expected to remain benign even in the next financial year. 

Global front: European markets were trading mostly in green despite concerns of a looming U.S. government shutdown. Asian markets settled mostly higher as in-line U.S. inflation data reinforced Fed rate cut hopes and a rebound in Chinese industrial profits suggested the world's second-largest economy is stabilizing amid robust policy measures. 

Finally, the BSE Sensex fell 61.52 points or 0.08% to 80,364.94 and the CNX Nifty was down by 19.80 points or 0.08% to 24,634.90.     

The BSE Sensex touched high and low of 80,851.38 and 80,248.84 respectively. There were 15 stocks advancing against 15 stocks declining on the index.   

The broader indices ended mixed; the BSE Mid cap index rose 0.34%, while Small cap index was down by 0.17%.

The top gaining sectoral indices on the BSE were Oil & Gas up by 1.96%, PSU up by 1.18%, Energy up by 1.10%, Realty up by 0.97% and Power up by 0.46%, while TECK down by 0.33%, Industrials down by 0.32%, IT down by 0.25%, Auto down by 0.12% and Telecom down by 0.10% were the top losing indices on BSE.

The top gainers on the Sensex were Titan Company up by 2.30%, SBI up by 1.58%, Eternal up by 1.18%, Trent up by 1.08% and Bharat Electronics up by 1.05%. On the flip side, Axis Bank down by 1.91%, Maruti Suzuki down by 1.65%, Larsen & Toubro down by 1.17%, ICICI Bank down by 1.01% and Bharti Airtel down by 0.81% were the top losers.

Meanwhile, Crisil Intelligence in its September report has said that high tariffs imposed by the United States (US) on Indian goods pose a major risk to the country's growth. It added that the tariffs will impact both Indian goods exports and investments. However, it noted that domestic consumption, driven by benign inflation and rate cuts, is expected to support growth.

The country's GDP rose to a five-quarter high of 7.8 per cent in the first quarter of fiscal 2025-26, up from 7.4 per cent in the similar quarter in the previous year. Nominal GDP growth, however, slowed to 8.8 per cent from 10.8 per cent during the same period. The report said consumer price index (CPI) inflation is likely to soften to 3.5 per cent in the current fiscal from 4.6 per cent in the previous year. Healthy agricultural growth is expected to keep food inflation under check, though the impact of excess rain was yet to be fully assessed.

As per the report, lower crude prices and benign global commodity prices are expected to contain non-food inflation. On the monetary policy, it said the Reserve Bank of India (RBI) is likely to implement one more rate cut this fiscal, followed by a pause. The central bank's monetary policy committee had cut the repo rate by 100 basis points between February and June 2025 and is now awaiting the full transmission of past cuts.

The CNX Nifty touched high and low of 24,791.30 and 24,606.20 respectively. There were 26 stocks advancing against 23 stocks declining, while 1 stock remained unchanged on the index.  

The top gainers on Nifty were IndusInd Bank up by 3.07%, Titan Company up by 2.70%, Hindalco Industries up by 1.65%, SBI up by 1.55% and Wipro up by 1.55%. On the flip side, Maruti Suzuki down by 1.76%, Axis Bank down by 1.73%, Dr. Reddy's Lab down by 1.13%, HDFC Life Insurance Company down by 1.07% and Eicher Motors down by 1.04% were the top losers.

European markets were trading mostly in green; UK’s FTSE 100 increased 61.31 points or 0.66% to 9,346.14 and Germany’s DAX gained 25.53 points or 0.11% to 23,765.00, while France’s CAC fell 6.58 points or 0.08% to 7,864.10.

Asian markets settled mostly higher on Monday tracking Wall Street’s gains last Friday as in-line US inflation data reinforced expectations of further rate cuts by the Federal Reserve. The US Personal Consumption Expenditures Price Index showed that Core inflation rate held at 2.9% in August on an annual basis, the same as July and in line with predictions. Chinese shares gained as rebound in Chinese industrial profits suggested the economy is stabilizing amid robust policy measures, while expectations of further stimulus from the People's Bank of China also bolstered market sentiment. Hong Kong shares surged ahead of China factory activity data due on Tuesday and the upcoming eight-day Golden Week holiday in China. However, Japan's Nikkei bucked the regional trend to close lower as numerous stocks went ex-dividend and investors became cautious ahead of the ruling Liberal Democratic Party’s leadership vote.