Nifty, Sensex Open Flat With Small Gains, All Eyes On US Fed Decision

Mumbai: Indian stock markets opened flat with a slight positive bias on Monday morning. Investors remained cautious as they wait for the outcome of the US Federal Reserve meeting. Still, some confidence came from better inflation numbers in India and hopes that the US might cut interest rates soon.

At 9:30 am, the Sensex was up 4.5 points at 81,909, while the Nifty rose 4.15 points to 25,118. The gains were very small, but the overall mood was stable.

Mid and Small-Cap Stocks Do Better

Even though the main indices were flat, smaller companies did better. The Nifty Midcap 100 index went up by 0.26 percent, and the Nifty Smallcap 100 rose by 0.53 percent, showing that investors were more interested in mid and small-sized companies.

Top Gainers and Losers on Nifty

On the Nifty 50, top gainers were Bajaj Finance, Tata Motors, Hero Motocorp, and Bajaj Finserv. On the losing side, big companies like Infosys, TCS, Sun Pharma, Dr. Reddy's, and Shriram Finance dragged the index a bit lower.

Sector Performance: Realty Shines, Pharma Falls

Among sectors, Nifty Realty did the best, rising 1.19 percent. Other sector gainers were Nifty PSU Bank (up 0.39 percent) and Nifty Auto (up 0.38 percent). On the downside, Nifty Pharma was the worst performer, falling 0.78 percent.

Inflation Falls Below RBI Estimate

India’s inflation cooled to 2.07 percent in August, much lower than the Reserve Bank’s forecast of 3.1 percent. This drop is good news for the economy and may lead to lower interest rates in the future, which supports the market.

Positive Chart Patterns and Global Support

Experts say that Nifty is showing a strong bullish pattern of higher highs and higher lows. The next key resistance level is at 25,250, and the support is around 24,900.

US, Asian Markets Strong; Fed Rate Cut Expected

Global markets also had a strong week. In the US, the Nasdaq rose 2 percent, the S&P 500 gained 1.6 percent, and the Dow was up 1 percent. Most Asian markets opened higher. The US market is now expecting a 96.4 percent chance of a 25 basis point rate cut on September 17, which could help markets rise further.