Indices edge lower in early trade; VIX jumps 3.26%

The domestic equity indices traded with minor losses in early trade as investors remained cautious ahead of this week?s U.S. Federal Reserve meeting, where policymakers are widely expected to resume the interest rate easing cycle.

The Nifty traded below the 24,100 level. Realty, PSU Bank and auto shares advanced while pharma, IT and metal shares declined.

At 09:30 IST, the barometer index, the S&P BSE Sensex, fell 42.46 points or 0.04% to 81,934.64. The Nifty 50 index shed 10.80 points or 0.04% to 25,085.80.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.24% and the S&P BSE Small-Cap index added 0.37%.

The market breadth was strong. On the BSE, 2,068 shares rose and 1,196 shares fell. A total of 225 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, added 3.26% to 10.45.

Foreign portfolio investors (FPIs) bought shares worth Rs 129.58 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 1,556.02 crore in the Indian equity market on 12 September 2025, provisional data showed.

Economy:

India?s forex reserves were up by $4.03 billion to $698.2 6billion in week ending September 5, according to the data released by the Reserve Bank of India (RBI) on Friday.

For the week ended September 5, foreign currency assets (FCAs), the largest component of the reserves, were up by $0.54 billion to $584.47 billion, the RBI data showed.

Gold reserves were up by $3.53 billion, standing at $90.29 billion during the reporting week. Meanwhile, SDRs in the last week were down by $34 million to reach at $18.74 billion.

India?s reserve position with the International Monetary Fund (IMF) rose by $2 million to stand at $4.75 billion, as per the data.

Stocks in Spotlight:

DCX Systems added 2.38% after the company signed a memorandum of understanding with Government of Tamil Nadu (GoTN) through its Nodal Agency Guidance at T N Rising Investment Conclave to set up a manufacturing facility for a JV company at Hosur.

Waaree Energies rose 1.32% after the company?s arm incorporates three wholly-owned subsidiaries in the name of Waaree Forever Energies Four, Waaree Forever Energies Five and Waaree Forever Energies One.

Numbers to Track:

The yield on India's 10-year benchmark federal paper rose 0.17% to 6.494 from the previous close of 6.483.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 88.2800 compared with its close of 88.2600 during the previous trading session.

MCX Gold futures for 3 October 2025 settlement shed 0.03% to Rs 109,337.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.05% to 97.59.

The United States 10-year bond yield rose 0.39% to 4.075.

In the commodities market, Brent crude for November 2025 settlement rose 41cents or 0.61% to $67.40 a barrel.

Global Markets:

Asia market traded mixed on Monday as investors kept an eye on the talks between the U.S. and China in Spain, and assessed a slate of data from Beijing.

As per reports, U.S. and Chinese officials began talks in Madrid Sunday to discuss key national security, economic, and trade issues, including the upcoming deadline to divest Chinese short video app TikTok and U.S. tariffs.

South Korea?s Kospi index rose in early trade to a record high on Monday after Finance Minister Koo Yun-cheol said that the government will scrap its previous plan to raise taxes on stock investments.

In China, retail sales last month rose 3.4% from a year earlier, data from the National Bureau of Statistics showed Monday, slowing from July?s 3.7% growth.

As per reports, the industrial output growth slowed to 5.2% in August, compared to the 5.7% jump in July, marking its weakest level since August 2024.

Fixed-asset investment, reported on a year-to-date basis, expanded just 0.5%, a sharp slowdown from the 1.6% expansion in the January to July period. Within that segment, the contraction in real estate investment worsened, slumping 12.9% in the first eight months, government data reportedly showed.

The major U.S. stock indexes finished mixed on Friday but still posted weekly gains ahead of next Wednesday's interest rate decision from the Federal Reserve.

The tech-heavy Nasdaq Composite (IXIC) rose 0.4% Friday to close at a record high and finish the week 2% higher. The S&P 500 (SPX) dipped 0.1% to post a weekly gain of 1.6%. The Dow Jones Industrial Average (DJI) fell 0.6% but closed the week up 1%.

Powered by Capital Market - Live News