Benchmark indices opened strongly on Monday morning, with the Sensex increasing by 309.47 points or 0.38 percent to reach 80,735.93. The Nifty rose by 98.15 points or 0.40 percent to 24,752.85 as of 10:04 AM, marking a cautious rebound following the sharpest weekly decline in seven months.
“After the most significant weekly decrease in seven months, markets are attempting a cautious recovery. However, external risks and event-driven volatility continue to be high, necessitating selective and cautious investor behavior,” stated Ponmudi R, CEO of Enrich Money, a SEBI-registered online trading and wealth tech firm.
This market recovery occurs despite ongoing selling by Foreign Institutional Investors (FIIs), who offloaded equities worth ₹5,687 crore on Friday and ₹30,143 crore in September thus far. Domestic Institutional Investors mitigated some of this selling pressure, acquiring equities worth ₹5,843 crore on September 26.
Among top gainers on the Nifty50, Bharat Electronics Limited led the rally, surging 2.55 percent to ₹406.00. Other notable performers included Eicher Motors, which rose by 1.98 percent to ₹327.35, Sun Pharma at 1.54 percent to ₹1,611.20, IndusInd Bank at 1.50 percent to ₹723.45, and Wipro, which gained 1.40 percent to reach ₹239.05.
Conversely, Axis Bank saw a decline of 1.55 percent, trading at ₹1,136.10, while Tata Consumer Products fell by 1.02 percent to ₹1,107.60. Hindustan Unilever dropped 0.98 percent to ₹2,487.10, Maruti Suzuki slipped 0.94 percent to ₹16,133.00, and Larsen & Toubro fell by 0.65 percent to ₹3,705.40.
“The near-term outlook for Indian markets remains challenging, as global shocks—from US tariffs and increased visa fees to declining tech demand—continue to dampen sentiment. Nevertheless, strong domestic demand and GST-driven consumption patterns are helping buffer some of the pressures, preventing a sharper decline,” added Ponmudi.
In a significant development for the pharmaceutical sector, China has eliminated the 30 percent import duty on Indian pharmaceutical products, allowing drug manufacturers to export without customs costs. “Pharma stocks will likely remain a focus, as this move could alleviate some impact from the 100 percent US tariffs on branded and patented exports,” Ponmudi noted.
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, cautioned that the broader market’s weakness is likely to persist, citing high valuations. He advised investors to gradually accumulate large-cap stocks in sectors such as automobiles, banking, telecom, capital goods, and cement.
Technical indicators suggest the need for caution. “The Nifty is currently at a critical support zone near 24,600, where both a key trendline and the highest Put open interest converge. A decisive breach below this level could precipitate a sharper decline to 24,400,” Ponmudi explained, indicating that resistance is positioned between 24,950–25,150.
The Reserve Bank of India is slated to announce its policy this week, with market participants closely monitoring statements regarding growth, inflation, and interest rates. “The monetary policy expected on October 1 is unlikely to surprise. The current growth-inflation dynamics do not justify a rate cut. Therefore, the RBI is expected to maintain rates while issuing a dovish message to bolster growth momentum,” stated Dr. Vijayakumar.
“Given the prevailing uncertainty and increased volatility, traders are recommended to adopt a cautious wait-and-watch approach, particularly with leveraged positions,” advised Amruta Shinde, Technical & Derivative Analyst at Choice Equity Broking Private Limited.
In commodities, gold reached new record highs, finding support at ₹1,13,400-1,13,080 and resistance at ₹1,14,350-1,14,700. Silver traded at a 14½-year peak, with support at ₹1,41,450-1,41,050 and resistance at ₹1,42,950-1,43,800. “If historical trends are any indication, silver could see substantial gains. The gold-to-silver ratio remains stretched at 87:1 compared to its usual average of 63:1, indicating a potential for an explosive breakout for silver,” commented Sourav Choudhary, Managing Director at Raghunath Capital.
Crude oil also extended gains last week, achieving a seven-week high, with support at ₹5,765-5,710 and resistance at ₹5,875-5,925, driven by geopolitical tensions involving Russia and NATO countries.
Published on September 29, 2025.
