The stock markets commenced the week on a subdued note on Monday, as investors adopted a cautious approach amid ongoing foreign fund outflows and valuation apprehensions. Over the past 13 months, the markets have struggled due to external influences such as tariffs, foreign institutional investor (FII) selling, and elevated valuations, which have intensified the selling trend.
At market open, the Nifty 50 index registered an increase of 22.30 points or 0.09 percent, reaching 24,916.55. Similarly, the BSE Sensex opened with a rise of 67.62 points or 0.08 percent, settling at 81,274.79.
Banking and market expert Ajay Bagga commented to ANI, “The news in India remains discouraging, despite a minor recovery in the latter half of last week. Thirteen months of underperformance and negative returns from the all-time highs in September 2024 have taken their toll. FPI selling continued into September, posing a risk that another weak earnings quarter for Q2 2026 will keep market sentiments low.”
Bagga highlighted that the upcoming earnings season, starting October 9, will be a focal point for market activity. “A trade deal with the United States appears increasingly unlikely, and we expect limited relief by November. The progress of the EU and UK Free Trade Agreements (FTAs) is also sluggish,” he noted.
In broader market indices on the NSE, the Nifty 100 increased by 0.09 percent, the Nifty Midcap 100 rose by 0.10 percent, while the Nifty Smallcap 100 experienced a 0.29 percent surge. Among sectoral indices, Nifty FMCG, Media, Pharma, and Oil & Gas were in the red, while other sectors recorded marginal gains during the opening session.
In another development, LG Electronics India Ltd has opened its Initial Public Offering (IPO) for pre-application, with a price range set between ₹1,080 and ₹1,140 per share. The issue size amounts to ₹11,607 crore, with the IPO scheduled to open on October 7 and close on October 9, 2025. This offering constitutes a complete offer for sale, meaning the net proceeds will be directed to selling shareholders. The bid lot consists of 13 shares, with allocations of 50 percent reserved for Qualified Institutional Buyers (QIBs), 35 percent for retail investors, and 15 percent for Non-Institutional Investors (NIIs).
On the international front, U.S. President Donald Trump announced that Hamas has consented to his Peace Formula aimed at demilitarization and the release of Israeli hostages. However, market reactions were muted as the overall scale of the conflict remains limited, even though concerns about potential escalation had briefly unsettled investors.
A significant development emerged from Japan, where the ruling party elected a pro-monetary and fiscal candidate and the first female prime ministerial aspirant, Sanae Takaichi. This led to a rise in investor sentiment, pushing Japan’s Nikkei 225 index up by more than 4.6 percent during Monday’s session. In other Asian markets, trading reflected mixed results, with Hong Kong’s Hang Seng index declining by 0.8 percent, while Singapore’s Straits Times index edged up by 0.08 percent.
Sunil Gurjar, a SEBI-registered analyst and founder of Alphamojo Financial Services, remarked, “The Nifty 50 has been consolidating within a clearly defined range for the past three months. A decisive breakout above the 25,500 level would signal a strong resumption of upward momentum. Technically, the index retains a bullish long-term outlook, as it trades above the crucial 200-Day Exponential Moving Average (200-EMA), currently positioned at 24,400, functioning as a robust psychological and technical support level.”
In summary, despite global optimism and selective strength in certain sectors, domestic markets remain cautious ahead of the earnings season, trends in FII activity, and global monetary policy developments.
Published on October 6, 2025.
