Stock Market Today: Benchmark indices ended lower on Tuesday, extending their losing streak to the eighth consecutive session, as investors remained cautious ahead of the Reserve Bank of India’s (RBI) monetary policy decision due later today at 10 am.
The Sensex gave up gains to close 97.32 points down at 80,267.62, while the Nifty slipped 23.80 points to settle at 24,611.10, on Tuesday.
The volatility was evident throughout the session as traders preferred to stay on the sidelines. Foreign Institutional Investors (FIIs) continued their selling pressure, offloading equities worth Rs 2,061.72 crore, even as Domestic Institutional Investors (DIIs) bought aggressively, pumping in Rs 5,242.78 crore.
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This trend reflects divergent views on India’s near-term prospects, especially with the RBI decision around the corner.
The three-day Monetary Policy Committee (MPC) meeting, chaired by RBI Governor Sanjay Malhotra, concludes today, October 1, with expectations split between a status quo on interest rates and a possible 25 basis points cut.
The meeting comes against a challenging backdrop, relentless foreign fund outflows, concerns over global demand, and fresh geopolitical tensions after the United States imposed 50 per cent tariffs on Indian imports.
Banking and financial stocks in focus
Rate-sensitive sectors, especially banking and financial services, stayed in the spotlight. The Nifty Bank index rose 0.32 per cent to close at 54,635.85, led by sharp gains in PSU banks.
Punjab National Bank rallied 3.28 per cent, followed by Canara Bank (up 2.91 per cent), Federal Bank (up 1.79 per cent), and Bank of Baroda (up 1.78 per cent).
Among private lenders, IndusInd Bank climbed 1.73 per cent and IDFC First Bank rose 0.56 per cent.
Heavyweights like SBI and HDFC Bank posted marginal gains, while Axis Bank and AU Small Finance Bank ended in the red.
The broader Nifty Financial Services index managed to stay slightly positive at 26,022.10. Stocks such as SBI Cards (up 1.70 per cent), Cholamandalam Finance (up 1.20 per cent), and Power Finance Corporation (up 1.14 per cent) contributed to the gains.
However, Bajaj Finserv slipped 1.17 per cent and ICICI Lombard fell 0.81 per cent, reflecting the mixed mood ahead of the policy outcome.
Autos and realty stocks show divergence
The auto index, another rate-sensitive pack, added 0.40 per cent with strong gains in Hero MotoCorp (up 3.26 per cent) and Tata Motors (up 1.49 per cent)
Realty stocks, however, came under pressure with the Nifty Realty index slipping 0.82 per cent, indicating investors remained cautious on high-leverage plays until clarity on interest rates emerges.
All eyes on RBI
Overall, the RBI’s decision will set the tone for the coming weeks for the stock market. While inflation has eased, global uncertainty and currency pressures may keep the central bank cautious.
A rate cut could provide immediate relief to rate-sensitive sectors such as banking, auto, and realty, while a status quo may disappoint investors betting on faster policy support.
