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Benchmarks end passing week with gains of over a percent amid strong GDP data
Sep-05-2025

Indian benchmarks ended passing week with significant gains of over a percent amid strong GDP data. Sentiments got boost as the GST Council approved a new dual-slab structure of 5% and 18%, aimed at simplifying indirect tax regime. Also, FDI equity inflow in India increased by 15% to $18.62 billion during April-June period of FY26 over $16.17 billion in the same period of FY25.

Some of the major developments during the week are:

India’s GDP grows to 5-quarter high in Q1 of FY 2025-26: The government data has showed that India’s economy grew by a stronger-than-expected 7.8% in April-June quarter (Q1) of fiscal year 2025-26, its fastest pace in five quarters, before US President Donald Trump imposed tariffs that now cloud the outlook.

Indian manufacturing sector witness fastest improvement in August: Indian manufacturing sector witnessed the fastest improvement in operating conditions in over 17 years in August with improvements in demand. The seasonally adjusted HSBC India Manufacturing PMI stood at 59.3 in August from 59.1 in July.

India’s CAD narrows in April-June period of 2025-26: The RBI data has showed that India’s current account deficit (CAD) narrowed to 0.2% of GDP, or $2.4 billion, during the April-June period of 2025-26 compared to 0.9% of the GDP, or $8.6 billion, in the year-ago period, helped by services exports.

Gross GST revenue rises 6.5% in August: The government data has showed that gross goods and services tax (GST) collection rose 6.5% year-on-year to Rs 1,86,315 crore in August 2025 with increased domestic sales, and the upcoming festive season is likely to swell the kitty going forward. 

India services sector growth hits 15-year high in August: India services sector growth reached a 15-year high in August, on surge in new orders. HSBC India Services PMI grew to 62.9 in August from 60.5 in July. HSBC India Composite PMI Output Index surged to 63.2 in August from 61.1 in July.

BSE movement for the week

The Bombay Stock Exchange (BSE) Sensex surged 901.11 points or 1.13% to 80,710.76 during the week ended September 05, 2025. The BSE Midcap index gained 817.46 points or 1.83% to 45,459.77 and Smallcap index surged 1303.08 points or 2.53% to 52,752.31. On the sectoral front, S&P BSE Metal was up by 1,776.07 points or 5.84% to 32,164.56, S&P BSE Auto was up by 2,923.24 points or 5.22% to 58,883.09, and S&P BSE Consumer Discretionary Goods & Services was up by 355.26 points or 3.65% to 10,093.16 were the top gainers, while S&P BSE Information Technology was down by 388.22 points or 1.13% to 34,049.10 and S&P BSE TECK was down by 164.07 points or 0.96% to 16,850.46 were the only losers on the BSE.

NSE movement for the week

The Nifty surged 314.15 points or 1.29% to 24,741.00. On the National Stock Exchange (NSE), Nifty Mid Cap 100 increased 1347.80 points or 2.42% to 57,075.20, Nifty Next 50 gained 1344.05 points or 2.04% to 67,089.80 and Bank Nifty was up by 458.90 points or 0.86% to 54,114.55, while Nifty IT was down by 545.40 points or 1.55% to 34,635.85.

FII transactions during the week

Foreign Institutional Investors (FIIs) were net sellers in equity segment in the week, with gross purchases of Rs 45,709.82 crore and gross sales of Rs 57,966.75 crore, leading to a net outflow of Rs 12,256.93 crore. They also stood as net buyers in the debt segment with gross purchases of Rs 15,146.14 crore against gross sales of Rs 11,612.36 crore, resulting in a net inflow of Rs 3,533.78 crore. In hybrid segment, FIIs stood as net sellers, with gross purchases of Rs 121.86 crore and gross sales of Rs 164.24 crore, leading to a net outflow of Rs 42.38 crore. (Provisional)

Industry and Economy

The GST Council at its 56th meeting approved rate overhaul by limiting slabs to 5% and 18% effective from September 22, the first day of Navaratri. At the meeting Centre and states thrashed out key tax proposals. Union Finance Minister Nirmala Sitharaman said all decisions were taken unanimously, with no disagreement with any state. The panel approved simplifying the goods and services tax (GST) from the current four slabs - 5, 12, 18 and 28% - to a two-rate structure - 5 and 18%. A special 40% slab is also proposed for a select few items such as high-end cars, tobacco and cigarettes. The new rates for all products, except gutkha, tobacco and tobacco products and cigarettes, will be effective September 22. 

Outlook for the coming week

In the passing week, Indian markets ended with gains of over a percent as investors reacted positively to the major Goods and Services Tax (GST) reforms announced by Finance Minister Nirmala Sitharaman.

On September 12, traders will keep an eye on India’s Inflation data, bank loan growth data, deposit growth data, foreign exchange reserves data. 

On the global front, investors would be eyeing few economic data from world’s largest economy, United States (US), starting with Consumer Inflation Expectations on September 08, Consumer Credit Change, NFIB Business Optimism Index, Redbook YoY on September 09, U.S. Producer Price Inflation on September 10, U.S. Inflation data, Initial Jobless Claims on September 11, Fed Balance Sheet, Michigan Consumer Sentiment Prel, Baker Hughes Oil Rig Count on September 12.

Top Gainers 

  • Tata Steel up by 9.15% was the top gainer on Nifty for the week - Steel stocks traded higher amid optimism over China’s plan to reduce steel production between 2025 and 2026. As per a private report, China - world's largest steel producer - will strictly curb new capacity and reduce production. Recently, Tata Steel acquired 353,23,38,309 equity shares of face value $0.1005 each aggregating to $355 million (Rs 3,104.03 crore) in T Steel Holdings. 
  • Mahindra & Mahindra (M&M) up by 8.07% was another top gainer on Nifty for the week - Auto stocks surged after GST reduced from 28% to 18% on buses, trucks, and ambulances. There is a uniform rate of 18% on all auto parts, irrespective of the HS code. Besides, M&M’s Farm Equipment Sector reported 28.29% rise in total tractor sales (Domestic + Exports) during August 2025 at 28,117 units, as against 21,917 units for the same period last year.  

Top Losers 

  • Infosys down by 3.70% was the top loser of the week on Nifty - Infosys came under pressure on account of profit booking. Meanwhile, Infosys entered into strategic collaboration with Mastercard to offer financial institutions enhanced access to Mastercard Move. Infosys entered into a multi-year strategic collaboration with One Bright Kobe, which operates Glion Arena Kobe, a new multi-purpose arena in Kobe, Japan.
  • Wipro down by 2.78% was another top loser of the week on Nifty - Investors booked profit in the stock after recent rally. Recently, Wipro completed its generative AI agent-building initiative with Google Cloud, delivering 200 production-ready AI agents across Healthcare, Banking, Insurance, Retail, Manufacturing, and IT industries. This is another step in the long-standing collaboration between Wipro and Google.

Technical viewpoints

During the week, CNX Nifty touched the highest level of 24,980.75 on September 4 and lowest level of 24,404.70 on September 1. On the last trading day, the Nifty closed at 24,741.00 with weekly gain of 314.15 points or 1.29 percent. For the coming week, 24,436.88 followed by 24,132.77 are likely to be good support levels for the Nifty, while the index may face resistance at 25,012.93 and further at 25,284.87 levels.

US Market

The U.S. markets traded higher during the week after weaker than expected U.S. private sector job growth in the month of August bolstered bets the US Fed will lower interest rates later this month.

Some of the major developments during the week are:

U.S. services index climbs to six-month high in August: The Institute for Supply Management said its services PMI rose to 52.0 in August from 50.1 in July. Street had expected the index to inch up to 50.5.

Labor productivity in U.S. surges 3.3% in Q2: Labor productivity shot up by 3.3 percent in the second quarter compared to the previously reported 2.4 percent jump. Street had expected the increase in labor productivity to be unrevised.

U.S. trade deficit widens more than expected as imports spike: The trade deficit shot up to $78.3 billion in July from a revised $59.6 billion in June. Street had expected the trade deficit to increase to $75.7 billion.

Jobless claims in U.S. rise more than expected to two-month high: Initial jobless claims climbed to 237,000, an increase of 8,000 from the previous week's unrevised level of 229,000. Street had expected jobless claims to inch up to 230,000.

U.S. private sector job growth slows more than expected in August: Private sector employment rose by 54,000 jobs in August. Street had expected private sector employment to rise by 65,000 jobs.

European Market

European markets remained lackluster during the passing week, as mood remained a bit cautious with investors looking ahead to crucial U.S. non-farm payroll data on Friday for clues about the Federal Reserve's likely interest rate decision later in the month.

Some of the major developments during the week are:

Eurozone retail sales fall more than forecast: Eurozone retail sales declined more than expected in July. Retail sales posted a monthly fall of 0.5 percent, in contrast to the 0.6 percent increase in June.

German construction sector downturn deepens: The survey results from S&P Global showed that the HCOB construction Purchasing Managers' Index fell to 46.0 in August from July's 29-month high of 46.3.

Eurozone private sector growth at 1-year high: The final survey data from S&P Global showed that the HCOB composite output index rose to 51.0 in August from 50.9 in July. 

Eurozone inflation rises slightly to 2.1%: The flash data from Eurostat showed that the harmonized index of consumer prices rose 2.1 percent year-on-year in August, slightly faster than the 2.0 percent increase in July.

Spain unemployment rises in August: The data from the labor ministry revealed that the number of unemployed increased 21,905 from the previous month in August, while figures were expected to rise moderately by 14,200.

Asian Market

Asian markets traded mixed during passing week as tariff-related uncertainties and caution ahead of key U.S. employment data kept investors on edge. 

Some of the major developments during the week are:

Japan household spending jumps 1.7% in July: Japan's household spending rose by an annual 1.4% in July, slightly up from the previous month's 1.3% increase. That beat expectations for an increase of 1.3% following the 5.2% decline in June.

Japan’s service sector growth moderates in August: The S&P Global final Japan Services purchasing managers' index (PMI) slipped to 53.1 in August from 53.6 in July, but remained comfortably above the neutral 50.0 level.

Trump signs order to cut tariffs on Japan autos to 15%: The White House has confirmed a reduction in the tariff on Japanese auto imports from 27.5% to 15%, as part of an executive order signed by US President Donald Trump. 

China's services activity expands in August: A private-sector survey showed China's services activity expanded at the quickest pace in 15 months in August, with the Caixin General Services PMI index rising to 53.0 from 52.6 in July.

China's manufacturing PMI rises in August: The purchasing managers' index (PMI) for China's manufacturing sector improved marginally in August, with the corresponding PMI rising to 49.4 from 49.3 in July.
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