Why Did Sensex and Nifty Close Slightly Lower Today?

Synopsis
Key Takeaways
- Sensex closed at 81,785.74, down 118.96 points.
- Nifty ended at 25,069.20, declining by 44.80 points.
- Investor caution influenced by upcoming US Fed policy meeting.
- Strong domestic consumption provides support to market sentiment.
- Broader indices showed positive growth in mid and small-cap stocks.
Mumbai, Sep 15 (NationPress) The domestic benchmark indices concluded the trading day marginally lower on Monday, as investors exercised caution in anticipation of the upcoming US Federal Reserve policy meeting. The equity indices traded within a limited range, bolstered by optimism surrounding robust domestic consumption following the GST reforms.
Sensex closed at 81,785.74, down 118.96 points or 0.15 percent. The 30-share index began the day flat at 81,925.51, compared to the previous session's closing of 81,904.70. Throughout the day, the index fluctuated, reaching an intraday high of 81,998.51 and a low of 81,744.70.
Nifty ended at 25,069.20, declining by 44.80 points or 0.18 percent.
According to analysts, "The benchmark indices traded mostly flat as investors were cautious ahead of the Fed policy meeting, with profit booking noted in the IT index following last week’s rally. While a 25-bps rate cut is largely anticipated, the markets are looking for direction on future rate adjustments to understand the potential path for bond yields."
Strong domestic consumption continues to support market sentiment, providing a buffer against declines. Furthermore, renewed optimism surrounding trade agreements and an expected earnings rebound in the second half of FY26 are enhancing investor confidence, analysts indicated.
Among the Sensex stocks, Asian Paints, Mahindra and Mahindra, Titan, Infosys, Sun Pharma, TCS, and Tech Mahindra were among the top losers. On the contrary, Bajaj Finance, Eternal, L&T, and Adani Ports saw gains.
Sectoral indices remained within a narrow range, reflecting subdued investor interest. Nifty Fin Services closed 29 points or 0.11 percent higher, while Nifty Bank rose 78 points or 0.14 percent. The Nifty IT, Nifty FMCG, and Nifty Auto indices ended in negative territory.
The broader indices showed positive growth with increased buying in mid and small-cap stocks. Nifty Small Cap 100 increased by 137 points or 0.76 percent, and Nifty Midcap 100 rose by 258 points or 0.44 percent, while Nifty 100 remained flat.
Market analysts noted that the indices took a pause as Nifty ended its eight-day winning streak below the 25,100 mark.
A decisive breakout above 25,150 could result in short covering, potentially leading to a rally towards the 25,300 zone. Given the recent upward momentum, some profit-taking at elevated levels is anticipated. Thus, the recommended strategy is to buy on dips, they advised.