Sensex, Nifty end flat amid anticipation of U.S. conomic data

In a session marked by cautious trading, India's benchmark stock indices closed almost flat on Tuesday as investors await key economic data from the United States, which could influence the Federal Reserve's upcoming decision on interest rates.

The S&P BSE Sensex slipped slightly by 4.40 points to close at 82,555.44, while the NSE Nifty50 managed a marginal gain of 1.15 points, ending the day at 25,279.85.

Vinod Nair, Head of Research at Geojit Financial Services, commented on the market's performance, stating, "With mixed global signals and no significant new catalysts apart from the anticipated Fed rate cut, which the market has already priced in, domestic equities took a breather."

The market sentiment was tempered by concerns over a recent slowdown in manufacturing activities, which some analysts interpret as an early sign of weakening demand. Despite this, Nair noted that expectations of an above-normal monsoon continuing through September, coupled with accelerated capital expenditure by the government in the second half of FY25, provided support to consumption-driven and rural-based stocks, particularly in the FMCG sector.

Aiyub Yacoobali, Chairman and Managing Director of South Gujarat Shares And Sharebrokers, highlighted the performance of the banking sector, noting, "Nifty opened flat in line with global cues and struggled to break through the 25,285 – 25,333 resistance zone. However, the Bank Nifty index outshined, closing at its highest level of the day, driven by strong performances from ICICI Bank and Shriram Finance."