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Mixed Market Sentiment with Sectoral Divergence Today

By Mandar in Indian Market Insights —

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The Indian markets showed mixed sentiment on September 29, 2025, with key indices changing marginally, reflecting investor caution ahead of significant economic events.

  • The Nifty 50 closed slightly down by 0.11%, around 24,628.
  • The Sensex fell by 0.09%.
  • Bank Nifty was almost flat, increasing by 0.07%.

Market volatility was present due to sector-specific movements and global influences.

Sectoral Performance:

  • The Nifty Capital Market and Next 50 indices performed well, increasing by approximately 0.80% and 1.03% respectively, indicating investor interest in midcap and capital market-related stocks.
  • Defensive and pharmaceutical sectors experienced relief rallies after tariff concerns eased.
  • Key pharma stocks such as Sun Pharma, Lupin, and Cipla gained momentum.
  • Sectors like India Defence and FMCG declined; the defence index fell 1.39% while Hindustan Unilever's shares dropped on forecasts of low sales growth due to GST impacts.
  • PSU banks, oil & gas, energy, and metals sectors showed strength, with buying observed in PSU banks and metal stocks, reflecting some defensive accumulation.

Technical and Market Indicators:

  • The Nifty index traded below the critical 25,000 psychological level, ending near 24,628.
  • This signals sustained resistance around 25,100-25,200 and the need to watch for support levels near 24,500.
  • Market breadth showed volatility with buying in select sectors, while broader markets faced selling pressure from previous days.
  • The India VIX implied volatility increased, reflecting greater uncertainty and possible choppy sessions ahead.

Key Latest News Impacting Markets:

  • White House exemption on pharma imports from trade pact nations supported pharma stocks.
  • Disappointing forecast from FMCG major Hindustan Unilever affected consumer staples.
  • Corporate developments such as PG Electroplast's land acquisition increased interest in industrial stocks.

Key Actions for Investors:

  1. Monitor technical support at 24,500 and resistance near 25,100 on Nifty for a trend reversal.
  2. Watch sector rotation carefully -- consider allocating to strong sectors like pharma, metals, and PSU banks for a tactical advantage.
  3. Exercise caution in FMCG and defence sectors due to potential profit-taking and negative earnings outlooks.
  4. Keep alert to policy developments, particularly RBI's MPC meet outcomes, which are key market drivers.
  5. Use volatility indicators like India VIX to manage risk during sessions with sharp swings.

In conclusion, the market's mixed performance, coupled with sectoral divergence and global and domestic uncertainties, suggests investors should take a cautious approach. Focus on selective stock and sector plays while closely monitoring technical levels.

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