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Benchmarks end higher for third straight week amid India-US trade deal hopes
Sep-19-2025

Indian equity benchmarks ended higher for third straight week as investors enthused by India’s positive day-long discussions with the visiting US team on a bilateral trade deal. Further, the US Federal Reserve's 25 basis points rate cut as well as foreign fund inflows, aided domestic sentiments. However, selling in the last session of the week capped some gains in the markets. 

Some of the major developments during the week are:

Retail inflation increases in August: India's retail inflation, as measured by the Consumer Price Index (CPI), increased to 2.07 per cent in the month of August 2025 from a revised 1.61 per cent in July 2025 on account of rise in food inflation. The CPI was 3.65 per cent in August 2024.

India's wholesale inflation comes back to positive territory: India's wholesale price index (WPI) inflation saw an increase in the month of August, reaching to 0.52% with slight increases in prices of non-food articles, minerals and food articles. This marks a shift from the -0.58% recorded in previous month.

India's merchandise exports rise in August: The commerce ministry data has showed that India's merchandise exports rose 6.71% to $35.1 billion in August 2025 over $32.89 billion in August 2024. Imports declined 10.12% to $61.59 billion in August 2025 as compared to $68.53 billion in August 2024.

Unemployment in India declines for second month in August: Ministry of Statistics and Programme Implementation in its Periodic Labour Force Survey (PLFS) has showed a decline in unemployment among people aged 15 years and above at 5.1% in August from 5.2% in July and 5.6% in both May and June.

Net direct tax collection grows 9.18% till September 17 this fiscal: The Central Board of Direct Taxes (CBDT) data has showed that net direct tax collection grew 9.18% to over Rs 10.82 lakh crore till September 17 in this fiscal (FY26), due to higher advance tax mop-up from corporates and slower refunds.

BSE movement for the week

The Bombay Stock Exchange (BSE) Sensex surged 721.53 points or 0.88% to 82,626.23 during the week ended September 19, 2025. The BSE Midcap index gained 683.03 points or 1.48% to 46,867.33 and Smallcap index surged 1073.55 points or 2.00% to 54,622.04. On the sectoral front, S&P BSE Capital Goods was up by 1,539.37 points or 2.21% to 71,231.16, S&P BSE Information Technology was up by 494.37 points or 1.39% to 35,968.43, and S&P BSE TECK was up by 286.00 points or 1.64% to 17,679.56 were the top gainers, while S&P BSE Consumer Durables was down by 504.13 points or 0.82% to 61,150.67 and S&P BSE Fast Moving Consumer Goods was down by 49.79 points or 0.24% to 20,736.68 was the only losers on the BSE.

NSE movement for the week

The Nifty surged 213.05 points or 0.85% to 25,327.05. On the National Stock Exchange (NSE), Nifty Next 50 gained 1542.60 points or 2.26% to 69,736.60, Nifty Mid Cap 100 increased 867.15 points or 1.49% to 59,094.35, Nifty IT was up by 467.50 points or 1.29% to 36,578.25 and Bank Nifty was up by 649.55 points or 1.19% to 55,458.85.

FII transactions during the week

Foreign Institutional Investors (FIIs) were net buyers in equity segment in the week, with gross purchases of Rs 62,653.50 crore and gross sales of Rs 59,816.68 crore, leading to a net inflow of Rs 2,836.82 crore. They also stood as net buyers in the debt segment with gross purchases of Rs 18,804.36 crore against gross sales of Rs 10,153.26 crore, resulting in a net inflow of Rs 8,651.10 crore. In hybrid segment, FIIs stood as net buyers, with gross purchases of Rs 237.26 crore and gross sales of Rs 231.98 crore, leading to a net inflow of Rs 5.28 crore.

Industry and Economy

Research and ratings agency -- Crisil in its latest report has said that the headline inflation during 2025-26 is projected to be 3.2 per cent, lower than its earlier estimate of 3.5 per cent. It said that the moderation implies a decline of 140 basis points in CPI inflation during this financial year, which is likely to give space for monetary easing. It said the RBI may cut rates by another 25 basis points this year. According to Crisil, lower inflation and reduced interest rates should increase domestic demand in the economy as global headwinds mount. The report also said that the excessive rains during the kharif season is a risk as it could cause disruptions in key horticulture and foodgrain-growing regions like Punjab which is facing its worst floods in four decades. 

Outlook for the coming week

In the passing week, key gauges ended with gains of over a half a percent on renewed optimism over the resumption of the India-US trade talks. Besides, US Federal Reserve delivered its first rate cut of 2025.

On the economy front, traders will be eyeing the HSBC Composite PMI Flash, HSBC Manufacturing PMI Flash, HSBC Services PMI Flash data, which scheduled to be released on September 23, Bank Loan Growth, Deposit Growth, Foreign Exchange Reserves data going to be out on September 26. 

On the global front, investors would be eyeing few economic data from world’s largest economy, United States (US), starting with Chicago Fed National Activity Index, S&P Global Composite PMI Flash, S&P Global Manufacturing PMI Flash, S&P Global Services PMI Flash on September 23, Building Permits Final on September 24, Initial Jobless Claims on September 25, Michigan Consumer Sentiment Final and Baker Hughes Oil Rig Count on September 26.

Top Gainers 

  • Bharat Electronics up by 6.17% was the top gainer on Nifty for the week - Bharat Electronics traded with traction on securing additional orders worth Rs 712 crore. Major orders received include IT Infra & Cyber Security Solution, ESM Systems, Block Chain Solution Platform, Communication Equipment, Spares, Services etc. Earlier, the company had bagged additional orders worth Rs 644 crore. 
  • Adani Enterprises up by 5.22% was another top gainer on Nifty for the week - Adani Group stocks traded higher after SEBI dismissed allegations of stock manipulation made by Hindenburg Research against Gautam Adani and his group. Separately, Adani Enterprises has received LoA from the National Highways Logistics Management for building the prestigious ropeway project connecting Sonprayag with Kedarnath. 

Top Losers 

  • Titan Company down by 3.26% was the top loser of the week on Nifty - Titan Company witnessed profit booking after recent rally. Recently, stock moved higher after the GST Council reduced rates on contact lenses, spectacle lenses, and glasses for corrective spectacles from 12% to 5%. This was a positive development for the company’s eyewear business 'Titan Eye+'
  • Asian Paints down by 2.90% was another top loser of the week on Nifty - Investors booked some profit in the stock after recent gains. Recently, Asian Paints had planned to invest Rs 1,500-2,000 crore in setting up a new greenfield plant at Indore in Madhya Pradesh. The new plant to have water-based paint manufacturing capacity of 4 lakh kilo litre per annum.

Technical viewpoints

During the week, CNX Nifty touched the highest level of 25,448.55 on September 18 and lowest level of 25,038.05 on September 15. On the last trading day, the Nifty closed at 25,327.05 with weekly gain of 213.05 points or 0.85 percent. For the coming week, 25,093.88 followed by 24,860.72 are likely to be good support levels for the Nifty, while the index may face resistance at 25,504.38 and further at 25,681.72 levels.

US Market

The U.S. markets traded higher during the week following the Federal Reserve's widely expected announcement of its decision to lower interest rates by a quarter point.

Some of the major developments during the week are:

U.S. leading economic index falls in August: The Conference Board said its leading economic index slid by 0.5 percent in August after inching up by a revised 0.1 percent in July.

Weekly jobless claims in U.S. pull back off nearly four-year high:  Initial jobless claims fell to 231,000, a decrease of 33,000 in the week ended September 13th from the previous week's revised level of 264,000. 

U.S. business inventories rise 0.2% in July: Business inventories rose by 0.2 percent in July, matching the increase seen June as well as street estimates.

Philly fed index surges to eight-month high in September: The Philly Fed said its diffusion index for current general activity spiked to a positive 23.2 in September from a negative 0.3 in August, with a positive reading indicating growth.

U.S. housing starts fall in August: The Commerce Department said housing starts plummeted by 8.5 percent to an annual rate of 1.307 million in August after surging by 3.4 percent to a revised rate of 1.429 million in July.

European Market

European markets exhibited a mixed performance during the passing week, after the Bank of England left its interest rate unchanged and softened its pace of quantitative tightening, as policymakers were wary about risks to inflation in the U.K.

Some of the major developments during the week are:

Eurozone current account surplus falls: The European Central Bank said that the current account surplus fell to EUR 27.7 billion in July from EUR 35.8 billion in June. 

UK inflation unchanged at 3.8%: The consumer price index rose 3.8 percent on a yearly basis in August, the same rate of increase as seen in July.

Eurozone inflation revised down to 2%: The final data published by Eurostat showed that consumer prices advanced 2.0 percent year-on-year, unchanged from the July's rate. 

Eurozone industrial production recovers in July: Industrial production registered a monthly growth of 0.3 percent in July, in contrast to the 0.6 percent decrease in June.

Eurozone trade surplus declines on weak exports: The data from Eurostat showed that the trade surplus fell to EUR 12.4 billion in July from EUR 18.5 billion in the same month previous year.

Asian Market

Asian markets traded mixed during passing week despite Wall Street's main indices reaching new record highs following the Federal Reserve's first interest-rate cut in nine months.

Some of the major developments during the week are:

Bank of Japan keeps rates steady: The Bank of Japan kept its policy rate steady at 0.5% as expected amid increased uncertainty over the country’s political future and the effects of U.S. trade tariffs on the economy.  

Japan’s exports down in August: Japan’s exports fell 0.1% year on year in August, extending their decline for the fourth consecutive month but at the slowest pace in the sequence. 

Japan's trade deficit narrows significantly in August: Japan’s trade deficit decreased significantly to 242.5 billion yen in August 2025 from 711.4 billion yen in the same month a year earlier, well below market expectations of 513.6 billion yen.

Japan's exports to US continue to fall in August: Japan's exports to US fell 13.8% in August compared to the same month the previous year, marking the fifth straight month of declines, as auto exports were hit by President Donald Trump's tariffs.  

Japan's core inflation slows in August: Japan’s core consumer prices rose 2.7% in the year to August, staying above the central bank’s 2% goal but marking the slowest pace in nine months.
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