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Markets witness bloodbath in passing week amid fresh tariff concerns
Sep-26-2025

Indian markets tumbled in the passing week with cut of over 2.50% and extended their losing run for fourth straight week following new round of tariffs on branded drugs heavy-duty trucks and kitchen cabinets by U.S. President Donald Trump. Traders remained concerned over Trump's decision to raise H-1B visa fees to $1,00,000 per worker. Foreign fund outflows also dented sentiments. 

Some of the major developments during the week are:

Output of eight key infrastructure sectors hits 13-month high in August: The Ministry of Commerce & Industry in its latest data has showed that the output of eight key infrastructure sectors jumped to a 13-month high of 6.3 per cent in August 2025 on account of expansion in coal, steel, and cement production.

India’s flash composite PMI falls in September: HSBC Flash PMI indices retreated from August's recent highs to signal a modest slowdown. HSBC Flash India Composite Output Index fell to 61.9 in September from a final reading of 63.2 in August. HSBC Flash India Manufacturing PMI slipped to 58.5 in September.

Retail inflation for farm workers up in August: The labour ministry in its latest data has said that retail inflation for farm and rural workers increased to 1.07 per cent and 1.26 per cent in August 2025 from 0.77 per cent and 1.01 per cent, respectively, in July. 

S&P retains India's GDP growth forecast at 6.5% in current fiscal: S&P Global Ratings in its Economic Outlook Asia-Pacific Q4 2025: Growth to Ease On External Strain report has retained India's GDP growth forecast at 6.5% in the current fiscal. India's GDP grew at 7.8% in the April-June quarter.

Govt launches Goods and Services Tax Appellate Tribunal: The Union Minister Nirmala Sitharaman launched the Goods and Services Tax Appellate Tribunal, marking a major milestone in the evolution of the GST regime and strengthening institutional framework for indirect tax dispute resolution.

BSE movement for the week

The Bombay Stock Exchange (BSE) Sensex slipped 2199.77 points or 2.66% to 80,426.46 during the week ended September 26, 2025. The BSE Midcap index losses 2120.07 points or 4.52% to 44,747.26, while Smallcap index slipped 2340.7 points or 4.29% to 52,281.34. On the sectoral front, S&P BSE Information Technology was down by 2,641.43 points or 7.34% to 33,327.00, S&P BSE Realty was down by 439.44 points or 6.13% to 6,728.29, S&P BSE TECK was down by 1,046.63 points or 5.92% to 16,632.93, S&P BSE Consumer Durables was down by 3,031.84 points or 4.96% to 58,118.83 and S&P BSE Healthcare was down by 2,209.92 points or 4.88% to 43,046.69 were the top losers, while there was no gainer on the BSE.

NSE movement for the week

The Nifty slipped 672.35 points or 2.65% to 24,654.70. On the National Stock Exchange (NSE), Nifty IT was down by 2876.25 points or 7.86% to 33,702.00, Nifty Mid Cap 100 decreased 2715.80 points or 4.60% to 56,378.55, Nifty Next 50 lost 2591.65 points or 3.72% to 67,144.95 and Bank Nifty was down by 1069.50 points or 1.93% to 54,389.35.

FII transactions during the week

Foreign Institutional Investors (FIIs) were net sellers in equity segment in the week, with gross purchases of Rs 73,749.27 crore and gross sales of Rs 79,254.52 crore, leading to a net outflow of Rs 5,505.25 crore. They also stood as net buyers in the debt segment with gross purchases of Rs 12,179.55 crore against gross sales of Rs 11,459.73 crore, resulting in a net inflow of Rs 719.82 crore. In hybrid segment, FIIs stood as net buyers, with gross purchases of Rs 628.39 crore and gross sales of Rs 442.35 crore, leading to a net inflow of Rs 186.04 crore. (Provisional)

Industry and Economy

Chief Economic Adviser (CEA) V Anantha Nageswaran has said that the government would stick to its 4.4 per cent fiscal deficit target and restrict market borrowing at the estimated Rs 6.82 lakh crore in the second half of the current fiscal year (H2FY26). The government had announced borrowing Rs 8 lakh crore through dated securities during the April-September period of 2025-26 to fund the revenue gap. The Union government, in consultation with the Reserve Bank of India is expected to announce a borrowing calendar for the second half (October-March) during this week. Fiscal deficit -- the gap between the government's total revenue and total expenditure -- is estimated to be 4.4 per cent of GDP for FY26 as compared to 4.8 per cent of the GDP revised estimated for the FY25. 

Outlook for the coming week

Local equity markets ended significantly lower in the passing week led by selling in pharma and IT stocks following concerns over proposed US tariffs and muted guidance from Accenture. Sustained selling by foreign investors also weighed on the markets. 

In the coming week, markets likely to witness some volatility with scheduled F&O series expiry on September 30 and traders balancing their positions going ahead for the next series. On the economy front, traders will be eyeing the Industrial Production data, which is scheduled to be released on September 29. Government Budget Value data going to be out on September 30. RBI Interest Rate Decision and HSBC Manufacturing PMI Final are scheduled to be released on October 01. 

On the global front, investors would be eyeing few economic data from world’s largest economy, United States (US), starting with Dallas Fed Manufacturing Index on September 29, Redbook YoY, Chicago PMI, Dallas Fed Services Index on September 30, S&P Global Manufacturing PMI Final, ISM Manufacturing PMI on October 01, Initial Jobless Claims on October 02, and Fed Balance Sheet, S&P Global Composite PMI Final, S&P Global Services PMI Final, ISM Services PMI on October 03.

Top Gainers 

  • Adani Enterprises up by 5.90% was the top gainer on Nifty for the week - The stock continued to remain on buyers’ radar amid progress on Navi Mumbai airport and SEBI's clean chit. As per a report, the Navi Mumbai International Airport is set to launch in October 2025. Separately, the Sebi cleared the Adani group of charges relating to alleged fund diversion and violations of related-party transaction norms. 
  • Maruti Suzuki up by 2.97% was another top gainer on Nifty for the week - Select auto stocks traded higher amid reports that the automakers witnessed surge in inquiries and deliveries on the first day of Navratri, following the implementation of the GST 2.0 regulations. Maruti Suzuki India reduced vehicle prices by up to Rs 1.29 lakh effective September 22, 2025 to pass on the GST rate cut benefit to customers.

Top Losers 

  • Tech Mahindra down by 9.22% was the top loser of the week on Nifty - IT stocks remained under pressure after US government increased the H1-B visa fee to $100,000 from $2000-$5000. This visa fee will be applicable for the next 12 months. It will only be applicable on new H1-B visa applications. Meanwhile, Tech Mahindra joined hands with AMD to accelerate enterprise transformation through next-generation infrastructure, hybrid cloud, and AI adoption.
  • Trent down by 9.04% was another top loser of the week on Nifty - The stock of the company continued to decline amid a broader market downturn. Moreover, some of the private broking firm reportedly cut their target. The broking firm suggested that although the company will benefit from the GST reductions, their impact on short-term revenue growth may be limited because it only relate to a small percentage of the company’s sales.

Technical viewpoints

During the week, CNX Nifty touched the highest level of 25,431.40 on September 22 and lowest level of 24,629.45 on September 26. On the last trading day, the Nifty closed at 24,654.70 with weekly loss of 672.35 points or 2.65 percent. For the coming week, 24,378.97 followed by 24,103.23 are likely to be good support levels for the Nifty, while the index may face resistance at 25,180.92 and further at 25,707.13 levels.

US Market

The U.S. markets traded lower during the week as renewed uncertainty about the outlook for interest rates were weighed on the markets sentiment following the release of some upbeat U.S. economic data. 

Some of the major developments during the week are:

Existing home sales dip much less than expected in August: The US Existing home sales dipped by 0.2 percent to an annual rate of 4.00 million in August after jumping by 2.0 percent to an annual rate of 4.01 million in July. 

GDP Surges 3.8% In Q2: The US real gross domestic product spiked by 3.8 percent in the second quarter compared to the previously reported 3.3 percent surge. The street had expected the pace of GDP growth to be unrevised.

Durable goods orders unexpectedly rebound in August: The Commerce Department said US durable goods orders shot up by 2.9 percent in August after tumbling by a revised 2.7 percent in July and plummeting by 9.4 percent in June.

US Weekly jobless claims decrease to two-month low: The initial jobless claims of US fell to 218,000, a decrease of 14,000 from the previous week's revised level of 232,000. The street had expected jobless claims to inch up to 235,000.

Mortgage applications growth slows: The US mortgage applications grew at a modest pace in the week ended September 19. The market composite index rose a seasonally 0.6 percent from the previous week, when it jumped 29.7 percent.

European Market

European markets traded lower weighed down by concerns about Trump administration's trade policy, and uncertainty about the outlook for Federal Reserve's interest rates. Also, traders digested regional data, and the latest batch of economic data from the U.S.

Some of the major developments during the week are:

Spain GDP growth improves more than forecast: Spain’s gross domestic product logged a quarterly growth of 0.8 percent, which was faster than the 0.6 percent rise in the preceding period and also the second quarter's initial estimate of 0.7 percent.

Italy consumer confidence improves in September: Italy’s consumer sentiment climbed to 96.8 in September from 96.2 in the previous month. The expected score was 96.5. Nonetheless, any reading below 100 indicates a pessimistic outlook. 

Eurozone bank lending growth rises in August: Annual growth in adjusted loans to households rose to 2.5 percent from 2.4 percent in July. At the same time, loan growth increased to 3.0 percent from 2.8 percent in July. 

UK retailers expect sales to fall further in October: UK retailers expect sales to decline at a steeper pace in October, highlighting the persistent weak demand conditions. A net 36 percent of retailers expect sales to decrease in October.

French consumer confidence remains unchanged: France's consumer sentiment remained unchanged at a low level in September amid political uncertainty. The consumer confidence index held steady at 87 in September and also matched expectations.

Asian Market

Asian markets traded mostly higher during passing week even as U.S. President Donald Trump announced a new round of tariffs ranging from 25 to 100 percent on upholstered furniture, kitchen cabinets, heavy trucks and branded drugs starting October 1.

Some of the major developments during the week are:

Tokyo overall inflation climbs 2.5% in September: Overall inflation in the Tokyo region of Japan was up 2.5 percent on year in September. That was shy of expectations for an annual increase of 2.6 percent.

Japan manufacturing PMI shrinks more than expected in September: The S&P Global Japan PMI data showed manufacturing activity remained in contraction at 48.4 in September from a final reading of 49.7 in August, falling short of expectations of 50.2.

Japan services growth hits 3-month low: The S&P Global Japan Services PMI edged down to 53.0 in September 2025 from a final 53.1 in the prior month, a preliminary reading showed.

South Korea producer prices slid 0.1% in August: Producer prices in South Korea were down a seasonally adjusted 0.1 percent on month in August- after rising 0.4 percent in July.

South Korea’s consumer confidence falls for first time in six months: South Korea’s composite consumer sentiment index slipped to 110.1 in September, down 1.3 points from August, reflecting concerns over an export slowdown following new US tariffs.
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