Indian equity benchmarks Sensex and Nifty experienced a sharp reversal in the early hours of September 30, 2025. The Sensex fell 450 points from its day’s high, while the Nifty declined by 131 points.
As of 11: 54 AM IST, the Sensex was at 80,344, down 20 points after hitting a low of 80,201 in early morning trade. The Nifty was well below 24,700, trading at 24,633 after hitting a low of 24,593 earlier today.
Analysts attribute the market’s uncertainty to three primary factors.
First, caution prevailed ahead of the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) meeting scheduled for October 1.
While a majority of economists anticipate the RBI to maintain the current interest rate, some expect a dovish stance to support economic growth. Experts believe the present growth-inflation dynamics do not warrant a rate cut, suggesting the RBI may hold rates while sending a dovish message to support growth momentum.
Second, sustained foreign institutional investor (FII) selling has contributed to bearish sentiment. Despite a positive institutional inflow of over ₹1,000 crore, the market closed negatively, indicating that foreign selling continues to weigh on market performance.
The near-term market structure appears weak, experts believe, with sustained FII selling and absence of positive triggers preventing any strong recovery.
Despite these challenges, sectors such as metals and pharmaceuticals showed resilience, with the Nifty Metal index gaining 0.8% and the Nifty Pharma index advancing 0.5%. Public sector banks also saw positive movement, with the Nifty PSU Bank index rising 1.8% following the RBI’s easing of lending norms and tightening of oversight measures.
Investors remain cautious as they await the RBI’s policy decision, which could provide direction for the markets in the near term.