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Key gauges end week in green amid GST rate overhaul
Aug-22-2025

Key gauges ended in green during the passing week buoyed by plans for big bang reforms in the GST regime by Diwali. Global rating agency S&P upgrading India's sovereign credit rating also boosted the sentiment. Easing tensions over trade tariffs and hopes of peace between Russia and Ukraine too enthused investors. 

Some of the major developments during the week are:

India's merchandise exports rise in July: The commerce ministry data showed that India's merchandise exports rebounded by 7.29% to $37.24 billion in July 2025 as compared to $34.71 billion in July 2024. Imports increased by 8.6% to $64.59 billion in July 2025 as compared to $ 59.48 billion in July 2024.

India’s unemployment rate dips in July: Ministry of Statistics and Programme Implementation (MoSPI) survey has revealed that India’s unemployment rate for the month of July declined to 5.2%. It was 5.6% for June. The pace of joblessness among men stayed slightly higher at 5.3% over that of women at 5.1%.

India’s flash composite PMI surges in August: India’s flash PMI data showed that private sector economy recorded its fastest growth since the start of survey data in December 2005 in August. The HSBC Flash India Composite Output Index rose by over four points in August 2025 to 65.2, from 61.1 in July 2025.

Output of eight key infrastructure sectors slows in July: The Ministry of Commerce & Industry in its latest data has showed that the output of eight key infrastructure sectors fell to a two-month low of 2% in July 2025 due to a dip in the production of coal, crude oil, natural gas, and refinery products.

India’s GDP likely to grow at 6.7% in Q1FY26: Rating agency ICRA has said that the India’s Gross Domestic Product (GDP) is expected to grow at 6.7 per cent in April-June period of current fiscal (Q1FY26), higher than 6.5 per cent a year ago, on the back of higher government capex and exports.

BSE movement for the week

The Bombay Stock Exchange (BSE) Sensex surged 709.19 points or 0.88% to 81,306.85 during the week ended August 22, 2025. The BSE Midcap index gained 911.04 points or 2.03% to 45,890.28 and Smallcap index surged 1213.44 points or 2.34% to 53,002.32. On the sectoral front, S&P BSE Auto was up by 2,732.23 points or 5.07% to 56,669.76, S&P BSE Consumer Discretionary Goods & Services was up by 350.38 points or 3.68% to 9,877.00, and S&P BSE Realty was up by 234.55 points or 3.43% to 7,065.52 were the top gainers, while S&P BSE PSU was down by 158.07 points or 0.83% to 18,869.02, S&P BSE Power was down by 41.37 points or 0.63% to 6,567.15 and S&P BSE BANKEX was down by 150.46 points or 0.24% to 61,474.93 were the few losers on the BSE.

NSE movement for the week

The Nifty surged 238.80 points or 0.97% to 24,870.10. On the National Stock Exchange (NSE), Nifty Mid Cap 100 increased 1125.50 points or 1.99% to 57,629.75, Nifty IT was up by 607.65 points or 1.74% to 35,440.85, and Nifty Next 50 gained 1028.50 points or 1.55% to 67,540.10, while Bank Nifty was down by 192.45 points or 0.35% to 55,149.40.

FII transactions during the week

Foreign Institutional Investors (FIIs) were net sellers in equity segment in the week, with gross purchases of Rs 62,077.31 crore and gross sales of Rs 62,580.06 crore, leading to a net outflow of Rs 502.75 crore. However, they stood as net buyers in the debt segment with gross purchases of Rs 14,618.91 crore against gross sales of Rs 8,429.29 crore, resulting in a net inflow of Rs 6,189.62 crore. In hybrid segment, FIIs stood as net buyers, with gross purchases of Rs 421.65 crore and gross sales of Rs 196.07 crore, leading to a net inflow of Rs 225.58 crore. (Provisional)

Industry and Economy

The Finance Ministry has said that the sovereign rating upgrade by S&P on August 14 is a significant affirmation of India's economic trajectory and prudent fiscal management. It added this marks the country's first sovereign upgrade by S&P in 18 years, the previous one being in 2007 when India was elevated to investment grade at BBB-. In May 2024, the agency revised its outlook on India from 'Stable' to 'Positive'.  The global rating agency S&P upgraded India's sovereign credit rating to 'BBB' with a stable outlook, citing robust economic growth, political commitment for fiscal consolidation and 'conducive' monetary policy to check inflation. The ministry said credible inflation management and increasing policy predictability have also played a central role.

Outlook for the coming week

Local equity markets ended the passing week in green terrain as investors reacted positively to news of GST reforms while managing profit booking in select sectors.

The coming week is likely to be a volatile one for local equity markets on account of F&O expiry, which is scheduled to take place on August 28. On the economy front, investors will be eyeing Industrial Production data, scheduled to be release on August 28. GDP growth rate, Fiscal deficit, Bank loan & deposit growth data and Foreign Exchange Reserves data are going to be out on August 29. 

Meanwhile, Prime Minister Narendra Modi is reportedly to visit Japan for three days from August 29. Japan is considering announcing a 10 trillion yen ($68 billion) decade-long private investment target for India.

On the global front, investors would be eyeing few economic data from world’s largest economy, United States (US), starting with New Home Sales and Dallas Fed Manufacturing Index on August 25, House Price Index and CB Consumer Confidence on August 26, API Crude Oil Stock and EIA Crude Oil Stocks on August 27, GDP Growth Rate and Initial Jobless Claims on August 29, and Core PCE Price Index on August 29.

Top Gainers 

  • Maruti Suzuki up by 10.92% was the top gainer on Nifty for the week - Maruti Suzuki is set to launch its new mid-size SUV in India on September 3, 2025, and it will go up against the likes of the Hyundai Creta and Kia Seltos. Internally codenamed Y17, it is currently referred to as the Maruti Escudo, but final production name could change at launch. The new model will be retailed through its Arena dealerships.
  • Nestle up by 6.75% was another top gainer on Nifty for the week - Nestle develops chocolate-making technique to maximise cocoa fruit yield Nestle unveils a new patented chocolate-making process designed to increase cocoa yield by using up to 30 percent more of the cocoa fruit. Nestle’s new method collects the entire pod content as a wet mass. This ferments naturally to unlock chocolate flavours. 

Top Losers 

  • ITC down by 3.20% was the top loser of the week on Nifty - FMCG stocks witnessed profit booking after recent rally. The stocks had gained after Prime Minister Narendra Modi hinted at the next generation of Goods and Services Tax (GST) reforms to be announced as a Diwali gift for consumers.
  • Bharat Electronics down by 2.61% was another top loser of the week on Nifty - Shares of defence companies like Bharat Dynamics, GRSE, HAL dropped as expectations of a ceasefire between Russia and Ukraine increased after US President Donald Trump met Volodymyr Zelenskyy in the White House.

Technical viewpoints

During the week, CNX Nifty touched the highest level of 25,153.65 on August 21 and lowest level of 24,596.90 on August 18. On the last trading day, the Nifty closed at 24,870.10 with weekly gain of 238.80 points or 0.97 percent. For the coming week, 24,593.45 followed by 24,316.80 are likely to be good support levels for the Nifty, while the index may face resistance at 25,150.20 and further at 25,430.30 levels.

US Market

The U.S. markets traded lower during the week on lingering uncertainty about the outlook for interest rates ahead of Federal Reserve Chair Jerome Powell's highly anticipated speech at the Jackson Hole Economic Symposium.

Some of the major developments during the week are:

U.S. leading economic index edges down in line with estimates in July: The Conference Board said leading economic index slipped by 0.1 percent in July after falling by 0.3 percent in June. The decrease matched street estimates.

Existing home sales in U.S. unexpectedly rebound in July: Existing home sales jumped by 2.0 percent to an annual rate of 4.01 million in July after tumbling by 2.7 percent to an annual rate of 3.93 million in June.

Philly fed index unexpectedly returns to negative territory in August: The Philly Fed said its diffusion index for current general activity tumbled to a negative 0.3 in August from a positive 15.9 in July.

U.S. weekly jobless claims rise more than expected: Initial jobless claims climbed to 235,000, an increase of 11,000 from the previous week's unrevised level of 224,000. Street had expected jobless claims to inch up to 225,000.

Homebuilder confidence in U.S. edges slightly lower in August: The NAHB/Wells Fargo Housing Market Index edged down to 32 in August after inching up to 33 in July. Street had expected the index to come in unchanged.

European Market

European markets witnessed mixed performance during the passing week, as investors looked ahead to Federal Reserve Chair Jerome Powell's speech at the Jackson Hole symposium for hints of possible rate cuts this year.

Some of the major developments during the week are:

Eurozone consumer confidence weakens more than expected in August: The preliminary results of the monthly survey by the European Commission revealed that the flash consumer confidence index for Eurozone dropped to -15.5 in August from -14.7 in July. 

UK private sector growth at 1-year high: The flash survey results from S&P Global revealed that the composite output index climbed to 53.0 in August from 51.5 in July. The reading was also above the forecast of 51.6. 

Eurozone private sector expands at fastest pace in 15 months: The survey results from S&P Global revealed that the HCOB flash composite output index climbed more-than-expected to 51.1 in August from 50.9 in July. The score was seen at 50.7.

Eurozone inflation remains at 2% as estimated: The final data from Eurostat showed that the harmonized index of consumer prices rose 2.0 percent year-on-year in July, the same rate of increase as seen in June.

Eurozone trade surplus declines sharply in June: The Eurostat reported that the trade balance registered a surplus of EUR 7.0 billion in June compared to May's surplus of EUR 16.5 billion.

Asian Market

Asian markets traded mostly lower during passing week as traders remained cautious amid lingering uncertainty about the outlook for interest rates ahead of US Fed Chair Jerome Powell's highly anticipated speech at the Jackson Hole Economic Symposium.

Some of the major developments during the week are:

Japan’s core inflation slows in July: Japan's Core consumer price index (CPI) rose 3.1 percent year-on-year in July 2025, easing from 3.3 percent in June but topping expectations of 3 percent.

Japan's factory activity extends declines in August: The manufacturing sector in Japan continued to contract in August, although at a slower rate, with a manufacturing PMI score of 49.9. That's up from 48.9 in July.

Japan core machinery orders climb in June: The value of core machinery orders in Japan was up a seasonally adjusted 3.0 percent on month in June- coming in at 941.2 billion yen. That beat forecasts for a decline of 0.4 percent.

Japan records trade deficit in July: Japan posted a merchandise trade deficit of 117.550 billion yen in July. That missed forecasts for a surplus of 196.2 billion yen following the downwardly revised 152.1 billion yen surplus in June.

South Korea’s producer prices rise in July: Producer prices in South Korea were up 0.4 percent on month in July. That was in line with expectations and up from 0.1 percent in June.
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