The stock markets commenced the new week on a muted note this Monday, as investors exhibited caution amidst ongoing foreign fund withdrawals and concerns regarding valuations.
For the past 13 months, the markets have been struggling, adversely affected by external factors such as tariffs, ongoing selling by foreign institutional investors (FIIs), and high valuation levels that have intensified the selling pressure.
At the start of trading, the Nifty 50 index recorded a slight increase of 22.30 points or 0.09 percent, settling at 24,916.55. Meanwhile, the BSE Sensex opened with a gain of 67.62 points or 0.08 percent, reaching 81,274.79.
Ajay Bagga, a banking and market expert, shared insights with ANI, stating, “The overall news in India isn’t particularly promising, despite a small recovery noted in the latter part of last week. We have now witnessed 13 months of underperformance and negative returns for the Indian markets since they peaked in September 2024. The trend of FPI selling carried on through September, and there are concerns that another disappointing earnings quarter for Q2 2026 could dampen market sentiments further.”
He emphasized that with the earnings season set to commence on October 9, the results from various companies will be pivotal to market dynamics going forward.
“The prospect of a trade agreement with the United States appears increasingly remote, and we anticipate only limited relief by November. Furthermore, the negotiations for Free Trade Agreements (FTAs) with the EU and the UK are progressing at a sluggish pace,” Bagga pointed out.
In the broader market indices on the National Stock Exchange (NSE), the Nifty 100 recorded a marginal rise of 0.09 percent, while the Nifty Midcap 100 increased by 0.10 percent, and the Nifty Smallcap 100 surged by 0.29 percent. Among the sectoral indices, sectors such as Nifty FMCG, Media, Pharma, and Oil & Gas were trading in negative territory, while other sectors observed minor gains during the opening session.
In corporate news, LG Electronics India Ltd’s Initial Public Offering (IPO) has opened for pre-application. The IPO has been priced within a range of Rs 1,080 to Rs 1,140 per share, with a total issue size of Rs 11,607 crore. The IPO will be accessible for investors from October 7 to October 9, 2025.
This offering is a complete offer for sale, meaning that all net proceeds will be distributed to the selling shareholders. Investors can bid in lots of 13 shares and in multiples thereof, with 50 percent of the offering reserved for Qualified Institutional Buyers (QIBs), 35 percent for retail investors, and 15 percent for Non-Institutional Investors (NIIs).
On the global front, US President Donald Trump announced that Hamas has consented to his Peace Formula, aimed at demilitarizing the group and releasing Israeli hostages. However, the market response has been limited as the scale of the conflict remains relatively small, although the potential for escalation had briefly alarmed investors.
A more significant development emerged from Japan, where the ruling party selected a monetary and fiscal dove alongside the first-ever female prime minister candidate, Sanae Takaichi. This event positively impacted investor sentiment, resulting in Japan’s Nikkei 225 index soaring more than 4.6 percent during Monday’s trading session.
Asian markets exhibited mixed results. The Hang Seng index in Hong Kong dipped by 0.8 percent, while Singapore’s Straits Times index posted a modest increase of 0.08 percent.
Sunil Gurjar, a SEBI-registered analyst and the Founder of Alphamojo Financial Services, remarked, “The Nifty 50 has been consolidating, remaining within a well-defined trading range for the past three months. A decisive breakout above the 25,500 mark would signal a robust resurgence in upward momentum. From a technical perspective, the index maintains a bullish long-term outlook, as it is trading above the crucial 200-Day Exponential Moving Average (200-EMA), which is currently positioned at 24,400 and continues to act as a significant psychological and technical support level.”
In summary, despite some global optimism and selective strength in various sectors, domestic markets are exhibiting a cautious stance ahead of the upcoming earnings season, foreign institutional investor trends, and potential global policy shifts.
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