Post Session: Quick Review

Indian equity benchmarks ended flat with negative bias on Tuesday, with both the Nifty and Sensex extending losses to eight consecutive sessions, amid persistent foreign institutional investors (FIIs) selling and increasing concerns over US tariffs. After making a positive start, soon indices turned volatile and traded near neutral lines throughout the day, as traders awaited the Reserve Bank of India's (RBI's) Monetary Policy Committee decision, which will be announced on Wednesday.

Some of the important factors in trade:

Indian economy likely to grow at 6.5% in FY26: Some concern also came as Asian Development Bank (ADB) stated that despite a strong 7.8 per cent growth in the first quarter, the Indian economy is expected to grow at 6.5 per cent in the current financial year as the impact of US tariffs on Indian exports will reduce prospects, particularly in the second half.

Continues FIIs outflow: Traders remained cautious as exchange data showed Foreign Institutional Investors offloaded equities worth Rs 2,831.59 crore on Monday.

Industrial output grows 4% in August: Traders took note of India's industrial output growth eased slightly to 4% in August after a spike in July. Manufacturing output rose 3.8%, slowing from the 6 percent increase in the previous month. 

Global front: European markets were trading mostly in red, while Asian markets ended mixed due to uncertainty around U.S. President Donald Trump's trade tariffs and U.S. government shutdown fears amid a partisan deadlock in Congress over spending and healthcare leaves.

The BSE Sensex ended at 80267.62, down by 97.32 points or 0.12% after trading in a range of 80201.15 and 80677.82. There were 16 stocks advancing against 14 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 0.04%, while Small cap index up by 0.08 points. (Provisional)

The gaining sectoral indices on the BSE were Metal up by 1.11%, Basic Materials up by 0.65%, PSU up by 0.60%, Auto up by 0.30%, and Bankex up by 0.22%, while Telecom down by 0.93%, Realty down by 0.79%, Consumer Durables down by 0.78%, TECK down by 0.50% and FMCG down by 0.39% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Ultratech Cement up by 1.44%, Adani Ports and Special Economic Zone up by 1.41%, Tata Motors up by 1.18%, Bharat Electronics up by 0.99% and Bajaj Finance up by 0.76%. On the flip side, ITC down by 1.19%, Bharti Airtel down by 1.18%, Trent down by 0.99%, Bajaj Finserv down by 0.93% and Titan Company down by 0.85% were the top losers. (Provisional)

Meanwhile, representing a landmark in India’s global trade strategy, Union Minister of Commerce & Industry, Piyush Goyal has said that the Free Trade Agreement (FTA) with the EFTA countries (Iceland, Liechtenstein, Norway, and Switzerland), which was finalised in March 2024, will come into effect from October 1, 2025.

Besides, highlighting the recent GST reforms, Goyal said that Prime Minister Narendra Modi has gifted the nation a transformative reform during Navaratri. He said ‘September 22 will be written in golden letters in history. I believe this is the biggest reform since Independence, the impact of which will be felt for decades.’

The Minister also noted that under the leadership of the Prime Minister, India has transformed from a fragile economy in 2014 to the world’s 4th largest economy today, and will become the 3rd largest economy with a $5 trillion size in the next two years. He underlined that inflation is at 2 percent - the lowest in a decade - while GDP growth stood at 7.8% in the last quarter. He also emphasised that India’s banking sector is robust and interest rates have come down.

The CNX Nifty ended at 24611.10, down by 23.80 points or 0.10% after trading in a range of 24587.70 and 24731.80. There were 25 stocks advancing against 24 stocks declining on the index, while one stock remained unchanged. (Provisional)

The top gainers on Nifty were JSW Steel up by 1.83%, Ultratech Cement up by 1.50%, Adani Ports and Special Economic Zone up by 1.47%, Tata Motors up by 1.14% and Hindalco up by 1.08%. On the flip side, Interglobe Aviation down by 1.97%, ITC down by 1.40%, Bharti Airtel down by 1.25%, Trent down by 1.12% and Titan Company down by 1.01% were the top losers. (Provisional)

European markets were trading mostly in red; France’s CAC fell 43.27 points or 0.55% to 7,837.60 and UK’s FTSE 100 decreased 9.99 points or 0.11% to 9,289.85, while Germany’s DAX gained 4.34 points or 0.02% to 23,749.40.

Asian markets settled mostly higher on Tuesday tracking Wall Street’s gains overnight, despite uncertainty around Trump’s trade policies as well as concerns about a possible US government shutdown. A shutdown could start Tuesday midnight if Congress fails to reach an agreement and could delay releases of key US economic data, including closely watched employment data for September, construction spending and possibly international trade data for August. Chinese and Hong Kong shares rose on stimulus bets after a gloomy report on mainland factory activity, while awaiting fresh cues from China’s 15th five-year plan discussions. However, Seoul shares declined even after data showed that South Korea's industrial production rose 2.4% month-over-month in August 2025, the strongest pace in five months. Japan’s Nikkei dipped, led by tech shares, after a summary of opinions at the central bank's September policy meeting showed board members debated the feasibility of raising interest rates in the near term. Meanwhile, half-yearly portfolio adjustments ahead of the LDP leadership election as well as Japan's disappointing industrial output and retail sales figures also weighed on market sentiments.