Indian equity indices opened higher on Monday, supported by gains in heavyweight stocks, as the Reserve Bank of India’s Monetary Policy Committee (MPC) commenced its three-day meeting to decide on the repo rate.
At 9:22 am, the Sensex was up 108 points, or 0.14 per cent, at 80,534, while the Nifty rose 30 points, or 0.12 per cent, to 24,685.
Buying momentum was observed in midcap and smallcap stocks, with the Nifty Midcap 100 index gaining 302 points, or 0.54 per cent, to 56,680, and the Nifty Smallcap 100 index up 90 points, or 0.51 per cent, at 17,651.
Among sectoral indices, Auto, IT, PSU Bank, Pharma, Metal, Realty and Energy were major gainers, while FMCG and Private Bank sectors recorded losses.
In the Sensex pack, BEL, Eternal, Titan, Tata Steel, Trent, M&M, Tata Motors, Infosys, Sun Pharma, TCS, SBI and Power Grid led the gains. HUL, Axis Bank, L&T, Maruti Suzuki, Bharti Airtel, ITC and HCL Tech were among the major losers.
Also Read : Indian pharma importing generic drugs to escape US tariff impact
The MPC meeting, which runs until Wednesday, is widely expected to maintain the key policy rate at 5.50 per cent. Analysts have noted that the monetary policy announcement on 1 October is unlikely to deliver any surprises.
“Current growth and inflation dynamics do not warrant a rate cut. The RBI is likely to hold rates while sending a dovish signal to support the economy’s growth momentum,” analysts said.
They added that the weakness in the broader market is likely to persist due to elevated valuations, suggesting that investors may gradually accumulate large-cap stocks in automobiles, banking, telecom, capital goods and cement.
Pharmaceuticals, they noted, also present a buying opportunity, as India’s generic exports are expected to remain unaffected by US tariffs on patented and branded medicines.
Meanwhile, foreign institutional investors (FIIs) extended their selling streak for a fifth consecutive session on 26 September, offloading equities worth ₹5,687 crore. Domestic institutional investors (DIIs), however, absorbed the selling pressure by purchasing equities worth ₹5,843 crore on the same day.
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