Sensex, Nifty End Lower as Investors Wait for US Fed Policy Meeting

Indian stock markets closed slightly lower on Monday as investors stayed cautious ahead of the US Federal Reserve’s policy announcement this week.

The Sensex ended at 81,785.74, down 118.96 points or 0.15%. It opened flat at 81,925.51 compared to the previous close of 81,904.70 and moved within a narrow range, hitting a high of 81,998.51 and a low of 81,744.70 during the day.

The Nifty also slipped, closing at 25,069.20, down 44.80 points or 0.18%.

Analysts said markets remained range-bound as traders awaited clarity from the Fed on future rate cuts. A 25-basis-point cut is already expected, but guidance on the next moves will be key for bond yields and global sentiment.

Back home, strong domestic consumption and hopes of improved earnings in the second half of FY26 continue to support investor confidence. Optimism around potential trade deals has also limited downside pressure.

Among Sensex stocks, Asian Paints, Mahindra & Mahindra, Titan, Infosys, Sun Pharma, TCS, and Tech Mahindra were the top losers. On the other hand, Bajaj Finance, L&T, Adani Ports, and Eternal closed higher.

Sector-wise, Nifty Financial Services gained 0.11% and Nifty Bank added 0.14%. However, Nifty IT, FMCG, and Auto ended in the red as profit booking set in after recent gains.

Broader markets performed better, with buying interest seen in mid- and small-cap stocks. Nifty Small Cap 100 surged 0.76%, Nifty Midcap 100 rose 0.44%, while Nifty 100 closed flat.

Analysts noted that the Nifty snapped its eight-day winning streak, closing below the 25,100 mark. They added that a breakout above 25,150 could spark short covering and push the index toward 25,300. However, with markets running strong in recent sessions, some profit booking is likely at higher levels. For now, they suggest a “buy on dips” strategy.