What’s the Outlook for Indian Markets with RBI MPC and India-US Trade Deal Next Week?
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Synopsis
The upcoming week is critical for Indian markets as key factors like the RBI MPC meeting and the India-US trade deal are set to shape investor sentiment. With fluctuating FII data and global economic signals, stakeholders are keenly observing how these developments will influence market trajectories.
Key Takeaways
- The RBI MPC meeting is set for September 29 to October 1.
- Anticipated 25-bps rate cut could impact investor decisions.
- Ongoing discussions on the India-US trade deal are promising.
- Recent FII activity shows significant equity offload.
- Investor sentiment remains cautious amid global uncertainties.
Mumbai, Sep 28 (NationPress) The upcoming week is poised to be pivotal for Indian equities as investors keep a close watch on the Reserve Bank of India’s Monetary Policy Committee (MPC) meeting, progress on the India-US trade deal, foreign institutional investor (FII) trends, and overarching global economic indicators.
The MPC meeting is set to occur from September 29 to October 1, during which the central bank is anticipated to assess interest rates.
Market analysts predict a 25-basis-point (bps) rate cut in the forthcoming policy announcement. Currently, the repo rate is at 5.5 percent.
Previously, the RBI opted to keep the policy rate steady, but since February 2025, it has reduced the repo rate by nearly one percentage point.
Attention will also be directed towards the India-US trade agreement, which is reportedly making favorable strides.
A senior Indian delegation, led by Commerce and Industry Minister Piyush Goyal, recently engaged in discussions in the US with US Trade Representative Jamison Greer and Ambassador Sergio Gor.
Additionally, FII data will be a significant influence. In the prior week, FIIs divested equities worth Rs 19,570.03 crore, while domestic institutional investors (DIIs) acquired shares valued at Rs 17,411.4 crore.
In the preceding week, the Nifty fell by 672.35 points or 2.65 percent to close at 24,654.70, whereas the Sensex saw a decline of 2,199.77 points or 2.66 percent, finishing at 80,426.46.
On Friday, both major indices continued to experience losses. The Sensex concluded 733.22 points or 0.90 percent lower at 80,426.46, while the Nifty dropped 236.15 points or 0.95 percent, closing at 24,654.70.
Analysts noted that Indian equities reflected the downturn observed across Asian markets.
“Investor sentiment was negatively impacted after new tariffs were levied on pharmaceutical companies, resulting in substantial declines in pharma stocks,” analysts commented.
Simultaneously, Accenture’s disappointing guidance and workforce reductions indicated a slowdown in IT spending, prompting a widespread sell-off in technology stocks.
In light of global uncertainties, investors are remaining vigilant and concentrating on domestic investment and consumption patterns in the near term.
Point of View
Our stance is firmly aligned with the nation's economic growth. The upcoming week holds significant potential for Indian markets, driven by critical decisions from the RBI and international trade dynamics. It's essential for investors to remain informed and engaged as these developments unfold.
NationPress
28/09/2025
Frequently Asked Questions
What is the RBI MPC meeting?
The RBI MPC meeting is a scheduled gathering where the Reserve Bank of India discusses and decides on monetary policy, including interest rates.
What impact do FIIs have on the market?
Foreign Institutional Investors (FIIs) significantly influence market trends as their buying and selling activities can lead to substantial movements in stock prices.
Why is the India-US trade deal important?
The India-US trade deal is crucial as it can enhance economic ties, boost exports, and create jobs, thereby positively impacting the Indian economy.
What are the current repo rates in India?
As of now, the repo rate in India stands at 5.5 percent, with expectations for a potential reduction in the upcoming MPC meeting.
How have the markets performed recently?
Recently, both the Nifty and Sensex have experienced declines, reflecting broader market trends and investor sentiment amid global economic uncertainties.
