Nifty, Sensex open flat on Monday, 13 months of no returns, weak earnings for Q2, FY26 to keep sentiments subdued

Market Overview - The stock markets started the week on a flat note, with investors cautious due to continuous foreign fund outflows and valuation concerns [1] - The Nifty 50 index opened at 24,916.55, up by 22.30 points or 0.09%, while the BSE Sensex opened at 81,274.79, gaining 67.62 points or 0.08% [2] Performance Analysis - The Indian markets have underperformed for the past 13 months, with negative returns since the all-time highs in September 2024, primarily due to foreign institutional investor (FII) selling and high valuations [3] - The broader market indices showed slight gains, with Nifty 100 up by 0.09%, Nifty Midcap 100 gaining 0.10%, and Nifty Smallcap 100 surging 0.29% [4] Sector Performance - Among sectoral indices, Nifty FMCG, Media, Pharma, and Oil & Gas were trading in the red, while other sectors experienced marginal gains [4] Upcoming Events - LG Electronics India Ltd's IPO is set to open for pre-apply with a price band between ₹1,080 and ₹1,140 per share and an issue size of ₹11,607 crore, opening on October 7 and closing on October 9, 2025 [5] Global Influences - The announcement of a peace formula by US President Donald Trump regarding Hamas and Israel had limited market reaction due to the small scale of the conflict [6] - In Japan, the election of a monetary and fiscal dove as the first female prime minister candidate boosted investor sentiment, with the Nikkei 225 index surging over 4.6% [7] Technical Analysis - The Nifty 50 has been consolidating within a defined range for the last three months, with a breakout above 25,500 indicating a strong resumption of upside momentum; the index is currently above the 200-Day Exponential Moving Average (200-EMA) at 24,400, serving as a strong support barrier [8]