FX.co ★ Sensex Sees Marginal Gain

On Monday, India's BSE Sensex closed with a slight increase at 80,787.3, after losing most of its early gains. This modest uptick was driven by strong performance in the automotive sector, though gains were offset by declines in the IT sector. Notably, Tata Motors rose by 4.2%, Mahindra & Mahindra by 4%, and Maruti Suzuki by 2.3%, after these automakers announced across-the-board price reductions in response to recent tax cuts. Tata Steel saw a 0.7% increase, buoyed by Morgan Stanley's positive outlook on the sector due to an anticipated rise in demand. However, the IT sector declined by approximately 1% as Citi highlighted potential economic challenges in the US and clients' increased focus on reducing costs. Meanwhile, traders approached the upcoming release of both US and domestic Consumer Price Index (CPI) data for August with caution, although expectations for an interest rate cut by the Federal Reserve in September remained strong.