India’s benchmark equity indices eked out a flat loss on Monday, extending a seven-session decline, as foreign portfolio investors kept selling and domestic institutions stepped in just enough to keep the Nifty above the 24,600 handle ahead of the Reserve Bank’s rate decision.
The S&P BSE Sensex settled at 80,364.94, down 0.08%, while the NSE Nifty 50 ended at 24,634.90, also off 0.08%. The session high for the Sensex touched 80,851.38 before afternoon profit booking erased the opening bounce that had tracked firm overnight cues from US technology shares.
Who moved the Nifty
Maruti Suzuki India was the heaviest drag on the Nifty 50, falling 1.76% as auto dealers said festive discounting had not yet translated into marginally better order books in western India. Axis Bank matched that decline percentage, weighing on the private-bank cluster after a broker note flagged slower unsecured growth in the September quarter.
IndusInd Bank led gainers with a 3.07% rise after it clarified that a regulatory inquiry into legacy trade-finance exposures remained closed. Titan Company and Hindalco Industries added more than 1.5% each, helped by steady domestic jewellery footfall reports from southern franchises.
Flows and volatility
Exchange data published after Friday’s session showed foreign institutional investors sold equities worth ₹5,687.58 crore, while domestic institutional investors bought ₹5,843.21 crore. Traders said that pattern repeated intraday on Monday, with DIIs absorbing supply from systematic foreign funds reducing India weights after US tariff headlines.
India VIX, the market fear gauge, ticked higher even though absolute index moves were small, reflecting option demand for Wednesday’s RBI event. Mid-cap indices actually outperformed, with the Nifty Midcap 100 rising 0.27%, a sign that domestic liquidity is rotating toward smaller lenders and industrial names with limited US revenue exposure.
Sectors and the week ahead
Media and consumer durables were the weakest sectoral pockets, while oil and gas names gained more than 1% as Brent held firm. Analysts said the market is unlikely to break the losing streak until the MPC communicates not just the rate vote but its assessment of tariff-hit export sectors.
With quarterly earnings still two weeks away for most Nifty constituents, price action is likely to stay macro-driven through October. For now, the seventh consecutive red close is less about panic than about cautious positioning before the central bank speaks.
Derivatives and global cues
Nifty weekly options expiring Thursday carried heavy put open interest at the 24,500 strike, dealers said, signalling hedging rather than outright bearish bets. US futures were mixed overnight, with technology names firm but energy soft as traders weighed Middle East supply routes.
Jewellery retailers listed on the exchange outperformed broader consumer names as gold prices held near record rupee levels, a paradoxical boost for Titan even on a red index day. IT services stocks were mixed: firms with large US banking clients lagged, while domestic-focused software vendors rose on state digital procurement wins announced Friday.
Brokers cautioned that a seventh down day historically precedes sharp rebounds once event risk clears, but they warned against averaging down in tariff-exposed small caps without reading balance-sheet footnotes on export concentration.
Currency traders said the rupee held steady in offshore markets during the equity session, suggesting the flat index close reflected equity-specific positioning rather than a broader capital flight story. Wednesday’s RBI statement will still move both markets if the tone surprises.