Indian benchmark indices demonstrated resilience on Monday, with the Nifty 50 closing at 23,414, up 68 points or 0.29%, extending gains for the fourth consecutive session and closing above the 23,400 mark. The BSE Sensex ended higher at 74,859, gaining 564 points, while the Nifty Bank rose 112 points to 56,471 and the Nifty Midcap index fell 178 points to 62,013. According to CNBC TV18, market breadth favoured advances, with the advance-decline ratio at around 2:1, indicating broad-based buying interest. As per The Economic Times, Nifty extended gains for the fourth consecutive session as easing of Brent oil offered some relief, with analysts expecting Indian equities to remain cautiously positive, with the US Federal Reserve's first-rate hike now largely priced in. As per The Hindu BusinessLine, market breadth was supportive, with 358 stocks from the Nifty 500 universe closing in positive territory, and the Nifty Midcap 100 gained 0.92% and the Nifty Smallcap 100 rose 0.76%, outpacing the headline indices.
Foreign institutional investors significantly increased their selling pressure on Monday, offloading shares worth ₹576.20 crore on a provisional basis after buying ₹600 crore on Friday. According to CNBC TV18, FIIs made gross purchases worth ₹10,637.17 crore against gross sales of ₹11,213.37 crore during Monday's session, resulting in net outflows of ₹576.20 crore. Over the four trading sessions from September 15-18, FIIs made gross purchases worth ₹73,377.14 crore against gross sales of ₹80,996.83 crore, resulting in net outflows of ₹7,619.69 crore. The highest net outflow came on September 17 at ₹3,208.76 crore, followed by ₹2,977.86 crore on September 15 and ₹2,032.61 crore on September 16. Domestic institutional investors (DIIs) remained net buyers for the fourth straight session, purchasing equities worth ₹2,797.27 crore on Monday, buying shares worth ₹14,098.64 crore and selling ₹11,301.37 crore. As per The Hindu BusinessLine, the Fed decision, though widely anticipated, still stung, keeping foreign institutional investors in selling mode. According to The Economic Times, India VIX, a measure of near-term market anxiety, rose 7% to settle at 12.29, indicating some increase in market fear despite the recent recovery.
Technical indicators suggest potential for further upside movement in the near term. According to The Economic Times, the RSI is also seen coming out of the oversold zone, indicating an improvement in momentum, with resistance placed at 23,300; sustained trading above this level might induce a rally towards 23,500. Support is placed at 23,200, below which the trend might weaken. The Nifty's technical setup shows improvement with the RSI moving out of oversold territory, as reported by The Economic Times, suggesting better momentum ahead. This technical improvement comes despite the ongoing foreign selling pressure and provides a positive backdrop for potential further gains in the near term.
Sectoral performance was mixed but tilted green, with pharma stocks surging significantly, with Cohance Lifesciences gaining over 5% despite US FDA observations for its API unit. According to CNBC TV18, Reliance Industries, ITC and HDFC Bank were the biggest contributors to the Nifty's gains. Patanjali Foods jumped nearly 8% following positive commentary to CNBC-TV18. However, capital market stocks ended lower, with BSE falling nearly 3%. OFSS declined over 8% amid reports of concerns related to its parent company's debt. Lenskart and Anupam Rasayan fell over 3% each following large trades through block deals. According to CNBC TV18, HDFC Bank and Bajaj Finance were among the key stocks supporting the Nifty, while TCS and Infosys were the biggest drags on the index.
The Indian rupee came under pressure, briefly slipping past the 96-per-dollar mark before recovering, with suspected Reserve Bank of India intervention offering some support. According to Choice Broking, the currency is expected to remain under strain, with traders watching the 96–96.20 range and the immediate resistance at 96.25. Brent crude eased to around $104 a barrel, offering modest relief to import-sensitive sectors, though analysts cautioned that a rebound toward the $108–$110 range could revive selling pressure. As per The Hindu BusinessLine, Brent crude, the global oil benchmark, traded 0.12% lower at $105.7 per barrel, providing some relief from the previous session's elevated levels. India VIX, a measure of near-term market anxiety, fell to around 12.25–12.29, suggesting some stabilisation even as macro headwinds linger. The cooling in crude oil prices provided significant relief to the Indian rupee, which had been under pressure from elevated oil prices and rising US Treasury yields.
