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Key Points

The upcoming week presents critical market dynamics for Indian equities with multiple significant events. The RBI's Monetary Policy Committee meeting will be closely watched for potential interest rate adjustments. Investors are tracking developments in the India-US trade agreement and monitoring foreign institutional investor activities. Global economic uncertainties and domestic market trends will continue to influence investor sentiment and market performance.

Key Points: RBI MPC Meet Piyush Goyal India US Trade Deal Market Outlook

  • RBI expected to review repo rate in upcoming MPC meeting
  • India-US trade delegation led by Piyush Goyal making positive progress
  • FIIs offloaded Rs 19,570 crore in equities last week
  • Nifty and Sensex experience significant weekly losses
2 min read

Market outlook: RBI MPC, India-US trade deal, FII data likely to drive sentiment next week

RBI monetary policy, US trade talks, and FII data set to drive Indian market sentiment with key economic indicators and policy developments.

"Investor sentiment was dented after new tariffs were imposed on pharmaceutical companies - Unnamed Market Analysts"

Mumbai, Sep 28

The coming week will be crucial for Indian equities as investors track the Reserve Bank of India's Monetary Policy Committee (MPC) meeting, developments on the India-US trade deal, foreign institutional investor (FII) activity, and global economic cues.

The MPC meeting is scheduled from September 29 to October 1, where the central bank is expected to review interest rates.

Market watchers anticipate a 25-basis-point (bps) rate cut in the upcoming policy. Currently, the repo rate stands at 5.5 per cent.

The RBI had left the policy rate unchanged in the previous review, but since February 2025, it has lowered the repo rate by nearly one percentage point.

Investor attention will also remain on the India-US trade agreement, which is progressing in a positive direction.

A high-level Indian delegation, led by Commerce and Industry Minister Piyush Goyal, recently visited the US and held talks with US Trade Representative Jamison Greer and Ambassador Sergio Gor.

FII data will be another key driver. Last week, FIIs offloaded equities worth Rs 19,570.03 crore, while domestic institutional investors (DIIs) bought shares worth Rs 17,411.4 crore.

In the previous week, the Nifty dropped 672.35 points or 2.65 per cent to close at 24,654.70, while the Sensex fell 2,199.77 points or 2.66 per cent to end at 80,426.46.

On Friday, both benchmark indices extended losses. The Sensex ended 733.22 points or 0.90 per cent lower at 80,426.46, and the Nifty shed 236.15 points or 0.95 per cent to close at 24,654.70.

Analysts said Indian equities mirrored the weakness seen across Asian markets.

"Investor sentiment was dented after new tariffs were imposed on pharmaceutical companies, leading to sharp declines in pharma stocks," analysts added.

Meanwhile, Accenture's weak guidance and job cuts signalled slowing IT spending, which triggered a broad selloff in technology counters.

Amid global uncertainty, investors remain cautious and are focusing on domestic investment and consumption trends in the near term.

- IANS

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Reader Comments

R
Rohit P
FIIs selling nearly 20,000 crore is worrying. But good to see DIIs stepping up with buying support. Shows domestic confidence in our markets despite global headwinds.
A
Arjun K
India-US trade deal could be a game changer for our exports. Piyush Goyal's team is doing good work. Let's hope we get favorable terms that benefit our manufacturing sector. 🇮🇳
S
Sarah B
The pharma sector correction seems overdone. These are quality companies with strong fundamentals. Might be a good buying opportunity for long-term investors.
V
Vikram M
While I appreciate RBI's cautious approach, they should be more aggressive with rate cuts. Inflation is under control and growth needs support. 25 bps is too little too late.
K
Kavya N
IT stocks getting hit because of Accenture's guidance is concerning. Our IT companies need to diversify beyond traditional services and focus on digital transformation offerings.
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Michael C
The market correction was expected after the recent rally. Healthy pullback that creates buying opportunities. Focus should remain on quality stocks with strong earnings visibility.

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