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Markets trade flat with negative bias
Oct-03-2025

Indian equity benchmarks made cautious start on Friday and were trading flat with negative bias, amid mixed global cues. Traders remained watchful on the second day of the potential U.S. government shutdown. Some cautiousness came after foreign institutional investors offloaded shares worth Rs 1,605.20 crore on a net basis on Wednesday. Traders overlooked government data which showed that gross GST collection rose 9.1 per cent to over Rs 1.89 lakh crore in September on the back of increased sales due to rate rationalization. Meanwhile, Commerce and Industry Minister Piyush Goyal said that the free trade agreement between India and the four European nations bloc EFTA has come into force. He also said the pact will unlock new opportunities for trade, investment and job creation, benefiting people and businesses.

On the global front, Asian markets were trading mostly higher with mainland China and South Korean markets closing for holidays. Optimism about the outlook for interest rates and weakening US dollar against major currencies in the region are aiding market sentiment.

The BSE Sensex is currently trading at 80951.98, down by 31.33 points or 0.04% after trading in a range of 80649.57 and 81018.61. There were 15 stocks advancing against 15 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.38%, while Small cap index was up by 0.64%.

The gaining sectoral indices on the BSE were Metal up by 1.74%, Basic Materials up by 0.98%, Industrials up by 0.71%, Capital Goods up by 0.63% and Bankex up by 0.50%, while Auto down by 0.78%, Energy down by 0.46%, Oil & Gas down by 0.39%, FMCG down by 0.20% and Consumer discretionary down by 0.19% were the losing indices on BSE.

The top gainers on the Sensex were Tata Steel up by 3.43%, Axis Bank up by 1.91%, Bharat Electronics up by 1.50%, Kotak Mahindra Bank up by 1.43% and Power Grid up by 1.03%. On the flip side, Mahindra & Mahindra down by 1.48%, Bajaj Finserv down by 1.47%, Bajaj Finance down by 1.17%, Maruti Suzuki down by 1.07% and HDFC Bank down by 0.71% were the top losers.

Meanwhile, the State Bank of India (SBI) in its latest report has said that Inflation in the current financial year (FY26) and the next financial year (FY27) is likely to be much lower than the Reserve Bank of India's (RBI) projections. The report highlighted that several domestic factors are working in favour of easing price pressures. These include healthy progress of the monsoon, higher kharif sowing, adequate reservoir levels, comfortable buffer stock of foodgrains, and the most significant factor, GST rate rationalization.

Taking these into account, the RBI recently revised downwards its FY26 CPI inflation projection by 50 basis points to 2.6 per cent, which marks a steep 160 basis point cut from the levels projected in April. For FY27, inflation numbers have been projected at 4.5 per cent. Alongside inflation, the regulator has also revised upwards its estimate for real GDP growth for FY26 to 6.8 per cent. 

The report further observed that in the face of global economic uncertainty and volatility in financial markets, the Monetary Policy Committee's (MPC) unanimous decision to hold the policy rate unchanged seems logical from a regulatory perspective. It added that monetary policy communication is crucial in guiding expectations, shaping perceptions of the reaction function, and maintaining clarity in forward guidance.

The report mentioned that RBI appears to have left the door open for future rate cuts, given the low inflation forecasts and the recent downward adjustments in growth estimates. However, the exact timing of such a move remains uncertain. The report also noted that the MPC's status quo decision reflects a rare form of dynamism that extends beyond monetary policy.

The CNX Nifty is currently trading at 24805.15, down by 31.15 points or 0.13% after trading in a range of 24747.55 and 24855.70. There were 22 stocks advancing against 28 stocks declining on the index.

The top gainers on Nifty were Tata Steel up by 3.39%, Hindalco up by 1.91%, Axis Bank up by 1.91%, JSW Steel up by 1.42% and Bharat Electronics up by 1.39%. On the flip side, Eicher Motors down by 2.20%, Max Healthcare Inst down by 2.11%, Bajaj Finserv down by 1.49%, Coal India down by 1.36% and Shriram Finance down by 1.34% were the top losers.

Asian markets are trading mostly in green; Nikkei 225 surged 743.27 points or 1.63% to 45,680.00, Taiwan Weighted added 283.85 points or 1.06% to 26,662.24, Jakarta Composite gained 21.02 points or 0.26% to 8,092.10 and Straits Times rose 9.36 points or 0.21% to 4,404.57. On the other hand, Hang Seng declined 230.12 points or 0.85% to 27,057.00.
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