Indian stock market closed a turbulent trading day today on Monday, September 29, 2025, on flat terms with benchmark indices trading in a narrow band. Investors traded with caution as they wait for the Reserve Bank of India’s (RBI) crucial Monetary Policy Committee meet that begins today to decide the direction of the market in the short term.
Sensex and Nifty Close Flat
At the close, the S&P BSE Sensex fell slightly by 61.52 points or 0.08% to 80,364.94. Similarly, the NSE Nifty 50 index lost 19.80 points or 0.08% to close at 24,634.90. The minimal fall followed fluctuations between gains and losses during the course of the trading day in the backdrop of cautious investor sentiment.
Sectoral Performance and Market Breadth
The session witnessed mixed sector performances. The Nifty Bank index was the top gainer, up by 0.13%, led by the strength of major PSU banks. Similarly, the Nifty Oil & Gas sector surged more than 1%, in line with firm energy prices and positive sentiments. Auto and Pharma sectors, on the other hand, closed in the red, down 0.18% and 0.15%, respectively, due to profit booking and global worries.
Among individual shares, Titan, State Bank of India (SBI), and NTPC were top gainers, while Axis Bank, Maruti Suzuki, Bharti Airtel, and ICICI Bank trailed. Market breadth continued to be weak with a modest pick-up in mid-cap indices, with the Nifty MidCap 100 index up 0.27% but the SmallCap 100 index down marginally by 0.07%.
Investor Sentiment and Foreign Flows
The sentiment in the market became cautious on account of a combination of reasons. Investors watched closely as India-US trade talks continued, yet remained undecided, bringing uncertainty. The expectation of the RBI policy decision and guidance on interest rates also contributed to being cautious. Foreign Institutional Investors (FIIs) seem to have continued their selling attitude with net outflows, and Domestic Institutional Investors (DIIs) picked up some of the selling pressure.
Looking Ahead: RBI Policy and Global Cues
The RBI’s Monetary Policy Committee meeting from today is the most awaited event that could determine market direction in the coming weeks. Analysts expect the central bank to keep interest rates unchanged but adopt a dovish stance balancing inflation control with growth support. Positive clarity on trade talks and a dovish RBI stance could provide momentum for a market rebound. However, geopolitical tensions and global macroeconomic factors remain risks.
Overall, the markets continue to be range-bound and responsive to domestic and global events, with investors taking a wait-and-watch stance prior to taking substantial positions in anticipation of pivotal policy signals.
