Markets concluded their significant eight-session winning streak on Monday, with key indices finishing slightly lower as investors adopted a cautious approach in anticipation of the upcoming US Federal Reserve policy announcement set for Wednesday.
The Sensex fell by 118.96 points, or 0.15 percent, closing at 81,785.74. Similarly, the Nifty 50 declined by 44.80 points, or 0.18 percent, settling at 25,069.20. The downturn was largely attributed to profit-taking among major IT and pharmaceutical stocks, amidst global uncertainty leading up to the Fed meeting.
“Today, the Indian stock market ended on a negative note, snapping its recent winning streak as both the Sensex and Nifty 50 posted mild declines by market close,” stated Vaibhav Vidwani, Research Analyst at Bonanza Group.
Among the top performers on the Nifty 50, Jio Financial Services was the standout gainer, increasing by 1.38 percent to ₹315.50 from a previous close of ₹311.20. Bajaj Finance followed with a 0.84 percent rise, closing at ₹1,011.70 compared to ₹1,003.25 previously. Eternal Advanced Materials rose by 0.68 percent to ₹323.60, while UltraTech Cement advanced 0.40 percent to ₹12,419.00. Bajaj Auto completed the top five gainers with a 0.34 percent increase to ₹9,030.50.
Conversely, Cipla led the decliners, falling by 1.75 percent to ₹1,547.00 from a previous close of ₹1,574.60. Mahindra & Mahindra experienced a 1.66 percent decline to ₹3,530.30, while Asian Paints dropped by 1.63 percent to ₹2,504.90. Shriram Finance fell 1.22 percent to ₹625.15, and Dr. Reddy’s Laboratories closed 1.19 percent lower at ₹1,301.00.
Sectoral performance was mixed during the session. The Nifty Realty index emerged as a strong performer, surging 2.41 percent on value purchases following recent corrections in real estate stocks. Shrikant Chouhan, Head of Equity Research at Kotak Securities, noted, “The Realty index outperformed, rallying over 2.60 percent, whereas intraday profit booking was observed in selective IT and pharma stocks.”
Support came from PSU Banks and Oil & Gas sectors, while defensive sectors like Pharma, Healthcare, Auto, and IT faced selling pressure. The broader market demonstrated resilience, with the Nifty Midcap 100 increasing by 0.44 percent and the Nifty Smallcap 100 rising by 0.76 percent, significantly outperforming the benchmark indices.
Market breadth remained positive, with 2,209 stocks advancing against 2,008 that declined among 4,389 traded on the BSE. A total of 149 stocks reached 52-week highs while 64 hit 52-week lows. No stocks were in the upper circuit, but four faced the lower circuit limits.
From a technical perspective, the Nifty formed a small-bodied candle with upper and lower shadows, indicating indecision among market participants. Nilesh Jain, Head of Technical and Derivatives Research at Centrum Broking, remarked, “A Tweezer Top candlestick pattern has formed, suggesting a phase of consolidation may be underway before the next leg higher.”
Bank Nifty exhibited even more subdued activity, trading within its narrowest intraday range of just 211 points since September 2024, closing marginally higher by 78.55 points, or 0.14 percent, at 54,887.85.
On the macroeconomic front, India’s wholesale prices saw a year-on-year increase of 0.52 percent in August 2025, surpassing market expectations of 0.30 percent and rebounding from a 0.58 percent decline in July. The Indian rupee remained stable, trading around 88.16 and posting minor gains of 0.10 percent as markets reacted positively to news of a US delegation visiting India for trade discussions.
In commodities, gold traded within a narrow range around $3,640 on Comex and ₹1,09,000 on MCX as traders assessed the potential implications of the Fed’s policy decision. Jateen Trivedi, VP Research Analyst at LKP Securities, stated, “Markets are pricing in a 0.50 bps rate cut along with guidance on the future roadmap, with sentiment leaning toward a dovish outcome.”
Market volatility remained subdued, with the India VIX rising by 2.72 percent to 10.39, reflecting low volatility but increasing uncertainty among participants gearing up for the Fed meeting.
Looking to the future, market participants anticipate continued consolidation, focusing on the US Federal Reserve’s policy outcomes and guidance on interest rates. Vidwani remarked, “We can expect the market trend to remain muted and rangebound until there is greater clarity from the US Federal Reserve regarding its policy trajectory.” The crucial resistance level of 25,150-25,200 will influence the next directional movement, with a decisive breakout potentially leading to a rally towards 25,300-25,500 levels in the near term.
Published on September 15, 2025.
