Indian markets closed Monday's volatile session on a positive note, as investors prepared for multiple central bank meetings this week. Today, markets are expected to open in green, following strong global cues. Market participants are particularly focused on the U.S. Federal Reserve's policy decision, scheduled for September 18, which is expected to heavily influence domestic market sentiment. Investors will also keep a close eye on domestic data releases, including the Wholesale Price Index (WPI), manufacturing statistics, and August's trade figures.

Additionally, Prime Minister Narendra Modi's remarks about India's increasing role in the global supply chain may offer market support. Modi emphasized that India's capacity for innovation and collaboration is fueling the nation's economic growth. Furthermore, Reserve Bank of India Governor Shaktikanta Das noted that the Indian rupee has been one of the least volatile currencies globally since the start of 2023, maintaining stability against the U.S. dollar. However, challenges such as foreign fund outflows and rising crude oil prices could weigh on market sentiment. According to NSE data, Foreign Institutional Investors (FIIs) were net sellers of Indian stocks, offloading ₹1,634.98 crore. Meanwhile, oil prices remained high as Hurricane Francine continued to affect production in the U.S. Gulf of Mexico, overshadowing concerns about Chinese demand.

There is also a cautious tone as Governor Das mentioned that future interest rate decisions will depend on inflation trends. He highlighted the importance of month-to-month inflation momentum in shaping the central bank’s approach. In other news, shares of P N Gadgil Jewellers Ltd will be listed on the stock exchange today.

U.S. markets saw moderate gains on Monday, with technology stocks weighing down performance as investors considered the possibility of a larger-than-expected rate cut from the Federal Reserve. Asian markets are trading mostly higher on Tuesday, with investors anticipating the start of the Federal Reserve's monetary easing cycle.

Back in India, Monday’s session saw modest gains, with investors staying cautious ahead of the upcoming Federal Reserve meeting. Recent U.S. inflation data tempered expectations for aggressive rate cuts, although the Federal Reserve is still projected to continue cutting rates over the coming months. Early trading was positive, buoyed by foreign fund inflows. Foreign Portfolio Investors (FPIs) remained optimistic about Indian stocks, investing ₹16,881.03 crore during the second week of September, as per National Securities Depository (NSDL) data. The Employees’ State Insurance Corporation (ESIC) also reported a 13.32% increase in subscriber additions in July 2024, compared to the same month last year.

However, by mid-session, the markets had erased earlier gains, influenced by negative trends from European markets. Investors became cautious after the Global Trade Research Initiative (GTRI) flagged concerns about India's export sector, highlighting issues such as container shortages, high freight costs, and dependence on foreign shipping companies. Yet, the indices regained strength in the afternoon, supported by reports of rising foreign exchange reserves, which have increased by $66 billion this year, reaching $689.235 billion.

In the end, the BSE Sensex gained 97.84 points (0.12%) to close at 82,988.78, while the CNX Nifty advanced by 27.25 points (0.11%) to 25,383.75.