Nifty, Sensex open flat as investors wait for fresh cues, US Fed meet outcome
Indian Stock Market Opens Flat with Positive Vibes
Mumbai’s stock market kicked off Monday on a steady note, showing a slight upward tilt. This comes after encouraging domestic inflation numbers and rising hopes for a US Federal Reserve interest rate cut. Investors seem optimistic as these factors could give the market a much-needed boost.
By 9:30 am, the Sensex climbed just 4.5 points, or 0.005%, to 81,909. Meanwhile, the Nifty edged up 4.15 points, or 0.017%, reaching 25,118. Both benchmark indices stayed mostly flat, but midcap and smallcap stocks stole the show. The Nifty Midcap 100 rose 0.26%, while the Nifty Smallcap 100 gained a stronger 0.53%.
On the Nifty 50, top performers included Bajaj Finance, Tata Motors, Hero MotoCorp, and Bajaj Finserv, driving some positive momentum. However, heavyweights like Infosys, Tata Consultancy Services (TCS), Sun Pharmaceutical Industries, Dr. Reddy’s Laboratories, and Shriram Finance pulled the index down.
Sector-wise, the Nifty Realty index led the pack with a sharp 1.19% jump, making it the biggest gainer. Nifty PSU Bank followed at 0.39% up, and Nifty Auto added 0.38%. On the flip side, Nifty Pharma slipped 0.78%, becoming the day’s top loser.
What’s fueling this sentiment? Latest government data shows India’s inflation cooled to 2.07% in August—way below the Reserve Bank of India’s (RBI) expected 3.1%. This lower inflation rate is a big relief for the economy and could pave the way for easier monetary policies.
Experts point out that Indian stocks have lagged behind global markets lately, but they now look like a smart buy at current valuations. Ongoing GST reforms, the buzz around a Fed rate cut, and strengthening US-India trade relations are all positive signs for the Indian stock market.
Last week was a winner for the Nifty 50, which marked its eighth straight gain and closed above 25,100 for the first time since July. That’s the longest winning streak in a year and the best weekly performance in nearly three months.
Devarsh Vakil, Head of Prime Research at HDFC Securities, shared his take: "The Nifty is steadily breaking key resistance levels. On the weekly chart, it’s forming higher tops and higher bottoms—a solid sign of a lasting bullish trend." He predicts the index could test 25,250 next, with 24,900 acting as a support level.
Globally, things look bright too. Major US indices wrapped up a strong week near record highs: Nasdaq up 2.0%, S&P 500 up 1.6%, and Dow up 1.0%—the best since early August. In Asia, markets rose in the morning session. China’s Shanghai index gained 0.22%, Shenzhen jumped 1.07%, Japan’s Nikkei rose 0.89%, Hong Kong’s Hang Seng added 0.32%, and South Korea’s Kospi inched up 0.52%.
Traders are betting big on the US Fed, with a 96.4% chance of a 25-basis-point rate cut on September 17, and more cuts likely by year-end. Softer US job data and sticky inflation are pushing the Fed toward a dovish stance, which is lifting stocks and even cryptocurrencies worldwide. Keep an eye on these trends—they could shape the Indian stock market’s next moves.
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