Sensex and Nifty Edge Higher in Morning Trade; Banks Support Gains

Mumbai, September 30 – Domestic equity benchmarks continued to rise early Tuesday morning, with banking counters proving to be significant support following a sharp correction last week.

Indices in Early Trade

At 10:04 a.m., the BSE Sensex had risen 58.77 points to 80,423.71, while the NSE Nifty increased 26.45 points to 24,661.35.

Market Drivers

Purchase interest in financials like HDFC Bank, ICICI Bank and SBI supported the rally, stabilizing the indices. Stocks like Power Grid, Asian Paints, Bajaj Finance, Bharat Electronics and Titan provided additional support, countering weakness in the likes of Reliance Industries, ITC, Larsen & Toubro and Trent.

Broader Market Context & FII/DII Flows

The gains come after a steep seven-day drop, in which the Sensex shed 2,649.02 points (3.19%) and the Nifty lost 788.7 points (3.10%). On Monday, foreign institutional investors (FIIs) sold net ₹2,831.59 crore worth of shares, while domestic institutional investors (DIIs) took in much of the outflow with net buying of ₹3,845.87 crore.

Global & Macro Cues

Indian equities opened higher across the board, with metals and financials spearheading sectoral advance after a long period of decline. The Monetary Policy Committee of the RBI is in the middle of its three-day meeting, with the markets keenly awaiting potential interest rate changes.

Though most economists anticipate the RBI to stick to status quo, a 25 basis-point reduction is on the cards as a good surprise. The Indian rupee remained close to record lows, trading around ₹88.76 against the U.S. dollar, under pressure from foreign outflows and high corporate dollar demand. Apart from that, the government has appointed Shirish Chandra Murmu as the next Deputy Governor of the RBI with effect from October 9.

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