Weekly Indian Stock Market Update Report: From September 22nd to 26th, 2025 | Scrolls

by KarNivesh | 27 September, 2025

Weekly Indian Stock Market Update Report From September 22nd to 26th, 2025- Scrolls.pdf

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The Indian stock markets endured a turbulent week marked by persistent foreign investor selling, rising trade tensions, and sector-specific headwinds. Both benchmark indices and broader markets closed lower, registering the sixth consecutive session of losses, with technology and pharmaceuticals leading the decline.

Indian stock market indices performance for the week of September 22-26, 2025, showing broad-based weakness across all segments

Market Performance

The Nifty 50 closed at 24,654.70, down 0.95% (236 points), while the BSE Sensex ended at 80,426.46, down 0.90%. Broader indices fared worse, with the Nifty MidCap 100 and Nifty SmallCap 100 shedding over 2% each. The Bank Nifty fell 1.07% to 54,389.35, erasing much of its recent gains.

Global cues provided little support. US markets gained modestly—S&P 500 (+0.6%), Dow Jones (+0.65%), and Nasdaq (+0.4%)—while Europe struggled, with Germany’s DAX (-0.88%) and France’s CAC 40 (-0.54%). Asian markets posted minor gains, with Japan, Hong Kong, and Shanghai indices inching up.

Macroeconomic Updates

Domestically, CPI inflation rose to 2.07% in August, ending a 10-month decline streak, but remained within RBI’s comfort zone. WPI inflation turned positive at 0.52%, driven by food and manufacturing items, while fuel inflation stayed negative at -3.17%. Industrial output was strong, with IIP up 3.5% in July, led by manufacturing growth of 5.4%.

The RBI’s MPC meeting (Sept 29–30) is expected to keep the repo rate steady at 5.50%, though some anticipate a 25 bps cut. The central bank has already reduced rates by 100 bps this year and cut the CRR to boost liquidity.

Sectoral & Corporate Updates

The IT sector was hit hardest, falling 2.45%, after the US imposed an H-1B visa fee of ₹88.7 lakh ($100,000) per worker, raising cost concerns for Indian firms. Major IT earnings are due in October, starting with TCS (Oct 9), followed by HCL Tech (Oct 13) and Infosys (Oct 16). Pharmaceuticals (-2.14%) and metals (-1.93%) also faced selling, while banks declined more moderately (-1.07%).

Outlook

The coming week brings the RBI policy decision (Oct 1), industrial production data, and the start of Q2 earnings season. Key support for Nifty lies at 24,450–24,500, with resistance at 24,850–24,900. IT, banking, FMCG, and oil & gas sectors will likely be in focus, influenced by policy measures, trade tensions, and global commodity trends.

In summary, while external pressures weigh heavily on Indian equities, strong domestic fundamentals and robust IPO activity suggest resilience, with investor attention now shifting to RBI decisions and upcoming earnings.