Taking Stock: Markets end flat ahead of RBI MPC meet outcome; PSU bank stocks gain

Markets End Flat Ahead of RBI Policy; PSU Banks Lead Gains

Indian equities ended marginally lower on September 30 as investors stayed cautious ahead of the Reserve Bank of India’s bi-monthly policy review.

At close, the Sensex slipped 100 points, or 0.13 percent, to 80,263, while the Nifty50 eased 25 points, or 0.07 percent, to 24,610.

A Moneycontrol poll indicated the RBI is likely to hold rates on October 1, though SBI Research suggested a calibrated 25-basis-point cut could be warranted.

Sectorally, PSU banks outperformed with the Nifty PSU Bank index climbing 1.9 percent. Metals and autos also gained, rising 1 percent and 0.5 percent, respectively. On the downside, Nifty Media fell 1 percent, while Realty and Consumer Durables shed 0.9 percent each.

“Equities ended flat as investors largely stayed on the sidelines ahead of the RBI policy. Without fresh triggers, momentum remained subdued,” said Ponmudi R, CEO of Enrich Money. He added that the policy outcome will be pivotal in shaping expectations around rates, liquidity, and inflation.

Technical experts flagged weakness in Nifty, which slipped toward 24,610 and faces support at 24,540. A breach could open the downside to 24,400, confirming a short-term negative trend.

Investors are also awaiting September auto sales numbers, due October 1.

Globally, sentiment was muted. In the US, fears of a government shutdown linger after talks between President Donald Trump and Congressional leaders ended without resolution. Failure to reach a deal by Wednesday could halt key government operations and delay economic data, including Friday’s non-farm payrolls.

“The near-term market outlook is cautious, with indices likely to stay range-bound until clarity emerges on policy, tariffs, and the earnings season,” said Vinod Nair of Geojit Financial Services.