Weekly Market Report 01 Sept 2025 to 05 Sept 2025 | Scrolls

Editor
Sep 6
2 min read

by KarNivesh | 06 September, 2025

The first week of September 2025 brought optimism back to Indian equity markets. Despite global uncertainties from trade tensions and geopolitical risks, domestic markets displayed resilience supported by strong GDP numbers, GST reforms, and healthy institutional inflows. Both Sensex and Nifty ended the week with gains of 1.12% and 1.20% respectively.

Market Performance

The BSE Sensex closed the week at 80,710, rising 346 points, while the NSE Nifty 50 ended at 24,741, up 116 points. Monday’s session gave markets a strong start, with Sensex gaining 555 points and Nifty rising 198 points, breaking a losing streak.

Among sectors, automobiles led the rally with over 5% gains, followed by metals and consumer durables. This was fueled by GST rate cuts on vehicles and stronger monthly sales.

Global Markets

Global equities gave mixed signals.

In the United States, the S&P 500 crossed 6,500 points and the Dow Jones hit new peaks. Technology stocks powered gains, while expectations of a Federal Reserve rate cut (95% probability for September 17) kept investors optimistic.
Across Asia-Pacific, Japan saw volatility due to tech sector pressures, while China’s manufacturing PMI improved to 50.5, signaling expansion. Hong Kong’s Hang Seng gained over 2% during the week.
In Europe, the STOXX 600 rose modestly, though UK markets struggled with fiscal worries and rising bond yields.

Domestic Economy Boost

India’s Q1 FY26 GDP growth surged 7.8%, a five-quarter high. The services sector grew 9.3%, manufacturing rose 7.7%, and construction gained 7.6%. Agriculture also improved to 3.7%, reflecting broad-based growth momentum.

Inflation offered relief. CPI inflation fell to 1.55% in July 2025, the lowest since 2017, driven by negative food inflation. Wholesale inflation also stayed in deflationary territory at -0.58%.

The RBI maintained the repo rate at 5.50%, keeping its stance neutral while ensuring liquidity support.

Corporate Earnings & Sectors

Q1 FY26 earnings showed mixed results. Nifty 50 companies reported 8% YoY profit growth, while overall PAT growth across 232 firms stood at 13%. Auto majors like Bajaj Auto, Hero MotoCorp, and M&M benefited from rural recovery. IT firms held steady amid global challenges, while banks showed uneven results.

Key beneficiaries included the auto sector, financial services, infrastructure, and consumer durables, boosted by reforms and demand recovery.

IPO & Market Activity

The primary market remained vibrant. Urban Company announced a ₹1,900 crore IPO (opening September 10), alongside issues from Dev Accelerator and Shringar House of Mangalsutra. SME IPOs also thrived, with eight new launches and strong retail participation.

Currency & Bonds

The rupee weakened to 88.26 per dollar, touching an all-time low of 88.36. This weakness came from heavy foreign fund outflows (₹1.3 lakh crore in 2025) and strong dollar momentum. Analysts expect further depreciation toward 89.

Bond markets remained steady, with the 10-year government yield around 6.25–6.50%. Corporate bonds, especially in infrastructure and renewable energy, attracted demand.

Outlook

Markets are expected to consolidate between 24,400–25,000 on Nifty. Key drivers ahead include August inflation data (expected ~2%), RBI’s late-September policy meet, and festive season demand.

Focus sectors: Automobiles, infrastructure, banking, and consumer durables. Global risks like US tariffs and geopolitical tensions remain challenges, but India’s strong fundamentals continue to provide a cushion.