Why Did Markets End Flat Ahead of RBI Policy Outcome?

Synopsis
Key Takeaways
- Indian stock market ended flat amid cautious investor sentiment.
- Banking and financial services sectors showed resilience.
- Metal and IT stocks faced declines.
- Upcoming RBI policy is a critical factor for market direction.
- Broader market indices exhibited mixed performance.
Mumbai, Sep 29 (NationPress) The Indian stock market concluded the day on a neutral note on Monday. The main domestic indices oscillated within a limited range as investors adopted a cautious stance ahead of the forthcoming RBI monetary policy announcement.
The banking and financial sectors experienced buying activity, while the metal and IT sectors faced declines.
The Sensex ended at 80,364.94, a decrease of 61.52 points or 0.08 percent. The 30-share index began the day positively at 80,588.77, compared to the previous session's close of 80,426.46. Despite broader market buying, the index remained range-bound, reaching intra-day highs and lows of 80,851.38 and 80,248.84, respectively.
The Nifty closed at 24,634.90, down 19.80 points or 0.08 percent.
“The Indian markets opened positively, taking cues from global trends, but displayed volatility throughout the session. The benchmark Nifty fluctuated within a narrow band of 24,800 to 24,600 before closing near the day's end,” analysts noted.
Market players remained vigilant as they anticipate the upcoming RBI monetary policy outcome, which is expected to be the next significant driver for market direction.
Among the top laggards in the Sensex stocks were Axis Bank, Maruti Suzuki, Bharati Airtel, ICICI Bank, L&T, HCL Tech, Kotak Bank, and PowerGrid. In contrast, Titan, SBI, NTPC, Trent, Eternal, BEL, Mahindra & Mahindra, Tata Steel, HDFC Bank, Bajaj Finance, Sun Pharma, and Bajaj FinServ showed positive movement.
Sectoral indices exhibited mixed performance. Nifty Auto dipped 48 points or 0.18 percent, while Nifty IT closed flat. Conversely, Nifty FMCG gained 98 points or 0.18 percent, Nifty Bank rose 71 points or 0.13 percent, and Nifty Fin Services increased 21 points.
Broader markets mirrored this trend. Nifty Midcap 100 surged 154 points or 0.27 percent, Nifty 100 advanced 27 points or 0.11 percent, and Nifty Next 50 jumped 690 points or 1.03 percent. However, Nifty Small Cap 100 ended lower.