FX.co ★ Sensex Ends Almost Muted

India's BSE Sensex ended the week with a nearly unchanged position at 80,711, following a volatile trading session on Friday. This performance keeps it close to its peak since August 26. Selling pressure in the FMCG and IT sectors was balanced by buying activity in the auto and metal industries. The consumer sector saw a drop of over 1%, ending a five-session surge where it had risen by 2.7%. This decline was notably driven by ITC's 2% decrease amid speculation of a new levy on tobacco products that might replace the existing 40% GST-related charge. Despite this, market sentiment remained buoyant, bolstered by optimism surrounding robust domestic demand strengthened by GST reforms, and anticipation of a potential interest rate cut by the US Federal Reserve this month. Looking ahead domestically, investors are focused on next week’s consumer price index (CPI) release for August, following July’s unexpected dip below the Reserve Bank of India’s target range. Mahindra & Mahindra, Maruti Suzuki, and Reliance Industries topped the gainers for the day, whereas ITC, HCL Technologies, and TCS were among the most significant decliners. Over the week, the index rose by 1.1%.