Nifty, Sensex open flat on Monday, 13 months of no returns, weak earnings for Q2, FY26 to keep sentiments subdued

MUMBAI: The stock markets started the fresh week on a flat note on Monday, as investors remained cautious amid continuous foreign fund outflows and valuation concerns. At the opening bell, the Nifty 50 index was up by 22.30 points, or 0.09 per cent at 24,916.55, while the BSE Sensex opened with a gain of 67.62 points, or 0.08 per cent at 81,274.79.

The markets have been underperforming for the past 13 months due to external pressures such as tariffs, foreign institutional investor (FII) selling, and high valuations that have further fueled the selling spree.

Ajay Bagga, banking and market expert, said, “The news in India is not so encouraging despite the minor recovery in the latter half of last week. Thirteen months are over of sheer underperformance and negative returns for the Indian markets from the all-time highs hit in September 2024. The FPI selling continued in September, and the risk is that another weak earnings quarter for Q2, 2026, will keep sentiments subdued.”

He added that with the earnings season set to kick off from October 9, company results will become the centerpiece of market activity. “A trade deal with the US is looking like a distant prospect, and we expect limited relief by November. The EU and UK FTAs are moving slowly as well”, Bagga noted.

In the broader market indices on the NSE, the Nifty 100 was up by 0.09 per cent, the Nifty Midcap 100 gained 0.10 per cent, while the Nifty Smallcap 100 surged 0.29 per cent. Among sectoral indices, Nifty FMCG, Media, Pharma, and Oil & Gas were trading in the red, while other sectors saw marginal gains in the opening session.

Meanwhile, LG Electronics India Ltd’s Initial Public Offering (IPO) has opened for pre-apply. The price band for the IPO is fixed between Rs 1,080 and Rs 1,140 per share, with an issue size of Rs 11,607 crore. The IPO will open on October 7 and close on October 9, 2025.

The issue is a complete offer for sale, meaning the net proceeds will go to selling shareholders. The bid lot is 13 shares and in multiples thereof, with 50 per cent reserved for Qualified Institutional Buyers (QIBs), 35 per cent for retail investors, and 15 per cent for Non-Institutional Investors (NIIs).

On the global front, US President Donald Trump announced that Hamas has agreed to his Peace Formula to demilitarise and release Israeli hostages. However, the market reaction has been limited as the conflict’s scale remains small, though escalation potential had briefly worried investors.

The bigger development came from Japan, where the ruling party elected a monetary and fiscal dove and the first-ever female prime minister candidate, Sanae Takaichi. This boosted investor sentiment, with Japan’s Nikkei 225 index surging more than 4.6 per cent in Monday’s session.

In other Asian markets, trading was mixed. Hong Kong’s Hang Seng index was down by 0.8 per cent, while Singapore’s Straits Times index was up marginally by 0.08 per cent.

Sunil Gurjar, SEBI-registered analyst and founder of Alphamojo Financial Services, said, “The Nifty 50 has been consolidating, trading within a well-defined range for the last three months. A decisive breakout above the 25,500 level would confirm a strong resumption of the upside momentum. Technically, the index maintains a bullish long-term stance, as the price is trading above the key 200-Day Exponential Moving Average (200-EMA), which is currently placed at 24,400 and continues to serve as a strong psychological and technical support barrier”.

Overall, despite global optimism and selective sectoral strength, domestic markets continue to remain cautious ahead of the earnings season, FII activity trends, and global policy developments. (ANI)