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The domestic markets looked set for a volatile start to the week. On Monday, as of 8:44 AM, the GIFT Nifty inched up 16 points to cross 25,150, after bleeding a bit in the early morning hours. The BSE Sensex opened the session at 81,956, climbing over 50 points, while the NSE Nifty50 began trading nearly flat at 25,117, as of 9:15 AM.

On the 30-share Sensex, Bajaj Finance, Tata Motors, Eternal, Adani Ports, and PowerGrid stood among the early gainers. Meanwhile, the laggards included Infosys, Sun Pharma, TCS, HCL Tech, and Asian Paints.

In the broader markets, the Nifty Smallcap100 stood out with gains of 0.64 per cent. Sectorally, the Realty index dominated across the board after it climbed 1.36 per cent. On the other hand, the IT index emerged as the largest laggard as it tanked 0.72 per cent.

Notably, in the pre-open session, both benchmarks traded in opposite directions. The Sensex soared beyond 82,050, as the Nifty dipped below 25,100, around 9:01 AM.

US Fed Rate Cut Decision

Investors are keenly awaiting the upcoming US Federal Reserve policy meeting. Market watchers widely expect a 25-basis-point rate cut, while a deeper 50-basis-point reduction, though less likely, could provide a significant boost to global equities, including India.

Trade developments will also be in the spotlight. Commerce and Industry Minister Piyush Goyal recently confirmed that India and the US are working towards finalising the first phase of a trade agreement by November. Meanwhile, negotiations with the European Union are said to be at an advanced stage.

Focus On FII Flows

Foreign institutional investors (FIIs) are gradually returning to Indian equities. They were net buyers in two of the past five sessions, including an inflow of Rs 129.58 crore on Friday, signalling a shift towards positive momentum. The previous week was strong for markets, with the Nifty gaining 373 points, or 1.51 per cent, to settle at 25,114, while the Sensex advanced 1,193.94 points, or 1.48 per cent, to close at 81,904.70.

Experts recommend a balanced approach for the week ahead, focusing on domestic cyclicals like autos, metals, and consumer discretionary, while maintaining exposure to defensives such as select FMCG and pharma counters.