Weekly Market Report 11 Aug 2025 to 15 Aug 2025 | Scrolls
- Editor
- Aug 16
- 4 min read
by KarNivesh | 16 August, 2025
The Indian equity markets displayed remarkable resilience during the week of August 9–16, 2025. Despite global uncertainties, profit-taking in certain sectors, and mixed institutional flows, benchmark indices closed the week modestly higher. The BSE Sensex settled at 80,597.66, while the NSE Nifty 50 ended at 24,631.30, both up around 1% for the week. This cautious optimism was largely supported by strong domestic fundamentals and record retail participation through systematic investment plans (SIPs).
Market Performance & Trends
The week saw range-bound trading, with both Sensex and Nifty oscillating within narrow bands. The Nifty maintained strength above its crucial 100-day EMA level at 24,589—an important technical signal that supported near-term momentum.
However, market breadth suggested underlying weakness, with 41 of 50 Nifty stocks closing lower on August 8. Meanwhile, volatility ticked up slightly, with the India VIX climbing to 12.35, reflecting growing caution among investors.
Sector rotation was the highlight of the week. While banking and financials saw selling pressure due to profit booking, fresh buying emerged in IT, pharma, and auto stocks. This shift indicated that investors are gradually rotating out of defensives and positioning toward growth-oriented sectors.
Globally, markets were mixed. US indices surged, with the NASDAQ gaining 3.9% and the S&P 500 up 2.4%. European indices also posted gains, while Asian markets diverged—Japan’s Nikkei rose 1.7%, but Hong Kong’s Hang Seng declined 1% due to ongoing concerns around China.
Macroeconomic & Policy Updates
India’s macro backdrop remained strong. Retail inflation dropped sharply to a six-year low of 1.6% in July, driven by favorable base effects and stable food prices. Wholesale inflation also slipped into deflation (-0.58%), though manufacturing inflation remained positive at 2.05%, reflecting resilience in industry.
The manufacturing PMI surged to 59.1, a 16-month high, signaling robust expansion in industrial activity. Strong export demand and rising new orders boosted production, hiring, and employment growth.
The Reserve Bank of India (RBI) kept the repo rate steady at 5.50%, with Governor Sanjay Malhotra emphasizing growth momentum and the need for transmission of earlier cuts. The RBI revised inflation forecasts for FY26 down to 3.1% while maintaining GDP growth at 6.5%. Liquidity support worth ₹8.8 lakh crore was also announced to strengthen credit growth and banking stability.
Globally, inflationary concerns lingered. The US Producer Price Index (PPI) rose 3.3% YoY in July, prompting speculation of further cautious moves by the Federal Reserve. Geopolitical tensions—particularly the Israel-Iran conflict and the ongoing Ukraine-Russia war—pushed gold near record highs of $3,451 per ounce.
Corporate & Sectoral Highlights
Banking Sector Strength
The Indian banking sector remained robust, with gross NPAs falling to a 12-year low of 2.6%. Profitability and capital adequacy improved, with credit growth stable at 11–13%. Interestingly, private banks outperformed PSU banks, with the NIFTY Bank Index delivering annual returns of 8.4% compared to -11.9% for PSU lenders.
Earnings Season
Q1 FY26 earnings presented a mixed picture. Hero MotoCorp reported a 65% surge in profit, driven by motorcycle demand. BPCL more than doubled profits on refining margins, while Muthoot Finance posted a 90% jump in net profit. On the flip side, some companies reported margin pressures amid high input costs.
Manufacturing Transformation
Government’s Production Linked Incentive (PLI) scheme continued to pay off, attracting investments of ₹1.76 trillion across 806 projects. Electronics manufacturing led the charge, with mobile exports soaring 139%. Pharma shifted from net importer to exporter of bulk drugs, and auto firms lined up ₹74,850 crore worth of investments. Manufacturing PMI figures reaffirmed this momentum.
IPO & Market Activity
Primary market activity remained vibrant. Seven IPOs are scheduled for the coming week, including Vikram Solar (₹209 crore), Shreeji Shipping (₹410 crore), and Gem Aromatics.
The SME IPO market was also buzzing, with 79 listings so far in 2025. Returns varied widely, with some stocks like Srigee DLM surging 125% from issue price, while others like Arunaya Organics fell 30%.
Currency & Bonds
The Indian Rupee weakened to 87.52 per dollar, down 4.3% YoY, pressured by higher imports, widening CAD, and strong US dollar strength. Analysts expect further weakness toward 88–90 levels by FY26.
Bond markets stayed stable, with the 10-year yield around 6.5%. The potential inclusion of Indian bonds in global indices like Bloomberg’s could attract significant FII inflows in H2 2025.
Retail Investment Boom
Retail investors continued to drive markets. SIP inflows touched an all-time high of ₹28,464 crore in July, with active SIP accounts reaching 9.1 crore. Equity mutual funds saw inflows of ₹42,702 crore, marking the 53rd straight month of positive flows.
Notably, small-cap, flexi-cap, and sectoral funds saw the highest traction. The overall MF AUM rose to ₹75.36 lakh crore. Importantly, the SIP stoppage ratio improved, showing investors’ growing discipline and resilience despite market volatility.
Infrastructure Push
Government capital expenditure hit ₹11.21 lakh crore in FY26, nearly six times 2014 levels. Metro rail length expanded from 248 km to over 1,000 km in a decade. Roads, freight corridors, ports, and airports also saw rapid expansion, reinforcing the “Viksit Bharat” vision.
Looking ahead, markets are expected to remain range-bound with a positive bias. Key triggers include upcoming US Fed commentary, corporate earnings, and domestic policy reforms—especially the government’s announcement of zero income tax up to ₹12 lakh and next-gen GST reforms.
Long-term investors are best positioned to benefit by focusing on quality large- and mid-cap stocks while maintaining SIP discipline. With structural tailwinds like record retail flows, PLI-driven manufacturing growth, and historic infrastructure spending, India’s equity markets remain a compelling story for patient capital.
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