Indian Market Weekly Review: 8th September -12th September 2025 | Scrolls
- Editor
- Sep 13
- 3 min read
by KarNivesh | 13 September, 2025
The Indian equity markets displayed resilience during the week of September 8–12, 2025, as both Nifty 50 and Sensex posted their second consecutive week of gains. The Nifty closed at 25,114, rising 1.5%, while the Sensex settled at 81,905, up 1.47%. This rally was supported by strong momentum in metals, automobiles, and capital markets, along with expectations of U.S. Federal Reserve rate cuts and healthy domestic fundamentals.
Broader markets outperformed with Nifty Midcap 100 and Smallcap 100 advancing 2.42% and 2.49% respectively. Sectorally, automobiles surged 5.2%, metals gained 4.6%, while IT declined 1.55%. Banking stocks rose moderately with Bank Nifty adding 0.86%. The India VIX closed at 10.12, reflecting low volatility and investor confidence.
Global & Macroeconomic Context
Global markets provided tailwinds. U.S. indices hit record highs, with the Dow Jones crossing 46,000 (approx. ₹40.6 lakh), S&P 500 up 0.85%, and Nasdaq 0.72%. Inflation in the U.S. held at 2.9%, reinforcing expectations of a 25 basis point Fed rate cut. Asian indices, including Japan’s Nikkei 225 and Korea’s KOSPI, also gained, while European markets posted modest advances.
Domestically, macro fundamentals remained strong. CPI inflation edged up to 2.07% in August (from 1.61% in July), still within RBI’s 2–6% comfort zone. WPI inflation turned positive at 0.45% after months of deflation. Industrial activity was robust with manufacturing PMI at a 16-month high of 59.1 and services PMI at 60.5. RBI held repo rates steady at 5.5%, maintaining a neutral stance, with FY26 GDP growth projected at 6.5%.
Corporate & Industry Trends
Q1 FY26 earnings marked a turnaround with aggregate profits rising 11% YoY. Oil & gas delivered 27% profit growth, cement 51%, and healthcare 11%. NBFCs rose 14%, while public sector banks grew 7%. The telecom sector swung back to profitability. However, automobiles saw a 3% decline in profits due to supply chain issues.
Primary Market & IPOs
The IPO market remained vibrant. Urban Company launched its issue at ₹98–103 per share, while Dev Accelerator and Shringar House of Mangalsutra also tapped markets. Upcoming IPOs from Reliance Jio, Zepto, PharmEasy, and Tata Capital kept investor sentiment high. SME IPOs attracted strong demand Airfloa Rail Technology was oversubscribed 43.3 times, while Jay Ambe Supermarkets drew 22.5 times. Some SME listings, however, showed volatility, with gains up to 21% and declines of 19%.
Currency & Bonds
The rupee weakened to 88.27 per USD, close to record lows, down 0.33% for the week and 5.26% over a year. Despite RBI intervention, global trade tensions weighed. Meanwhile, the bond market rallied as the 10-year G-Sec yield eased to 6.48% on expectations of Fed easing and lower inflation.
Global & Domestic Risks
Trade tensions escalated as the U.S. imposed 50% tariffs on Indian goods, threatening a 0.5–0.6% hit to GDP. Key affected sectors include textiles, gems, automobiles, and agriculture, though IT and pharma exports were largely shielded. Brent crude slipped to $66.72 (₹5,890) per barrel, easing import pressures, while gold surged 46–48% YoY in Indian markets.
Outlook
Markets enter the next week focused on the Fed’s September 17 policy decision, India’s WPI release, and trade data. Sectors likely in focus include metals, autos (especially EVs), financials, IT, and FMCG. While domestic institutional inflows remain strong, global uncertainties and tariffs may pose risks, making adaptive strategies crucial.
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