Mumbai: Indian stock markets ended lower this week, with the Sensex dropping 0.9% and the Nifty falling below the key 24,400 mark, closing at 24,363.
Markets Continue to Consolidate
The equity markets continued their consolidation phase for another week, a trend that has been ongoing since early July. Analysts say market sentiment was negatively affected by:
High global interest rates
Weak signals from global markets
Ongoing profit-booking in large-cap sectors
RBI Lowers Inflation Forecast, Keeps Rates Unchanged
The Reserve Bank of India’s Monetary Policy Committee (MPC) met this week and made the following key decisions:
Lowered FY26 inflation forecast from 3.7% to 3.1%, citing good monsoon and better supply
Kept repo rate steady at 5.5%
Maintained neutral policy stance
Kept GDP growth forecast for FY26 at 6.5%
US Tariffs Add Pressure
The United States imposed a 25% tariff on Indian exports during the week. However, the RBI Governor stated that the impact on India’s economy would be minimal.
Despite that, experts say the market mood was affected by:
Higher US tariffs
Weak quarterly earnings
Foreign Institutional Investor (FII) selling, especially in pharma stocks with major US exposure
Rupee depreciation, which added to investor concerns
Analysts Expect Ongoing Volatility
Vinod Nair, Head of Research at Geojit Financial Services, noted that RBI’s positive outlook on domestic growth and signs of easing inflation provided some support to the market. However, volatility is likely to continue.
Investors are now waiting for inflation data from both India and the US, which could influence market direction.
Technical View: Nifty Near Support Levels
According to Mandar Bhojane from Choice Equity Broking:
The Nifty has formed six red candles in a row on the weekly chart, showing continuous selling.
If the index finds support between 24,200 and 24,000, it could become a buying opportunity.
A close above 24,590 could push the index toward 25,000 or even 25,250 in the short term.
