Indian Developments
On September 5, 2025, the Nifty 50 closed the week at 24,721, rebounding with a 1.29% gain after two consecutive weeks of decline. The rally was largely driven by renewed optimism around the anticipated GST 2.0 reforms. Additionally, progress in India’s trade negotiations with the EU, and growing expectations of a Free Trade Agreement (FTA) by year-end, further buoyed investor sentiment.
For the week, Nifty Midcap 150, and Nifty Small cap 250 uplifted by 2.04%, and 2.41%, respectively.
The Indian rupee touching a record low of Rs 88.20/$ raising concerns over imported inflation. On the commodities front, gold prices remained firm, benefiting from global uncertainty and the weaker rupee.
FIIs remained the net sellers, while DIIs provided strong support.
Sectoral Developments
During the week, most major sectors ended in the green, with Nifty Metal emerging as the top performer, posting a 5.75% gain. The rally was driven by China’s announcement of production cuts, supportive government policies, and a weaker US dollar.
Other significant performers included Nifty Auto (5.45%), Nifty Capital Markets (4.37%), Nifty EV and New age Automative (-3.45%), Nifty Consumer Durables (3.20%).
The major laggard seen was Nifty IT , declined by 1.55% led by disappointing US labour data, US tariff and persistent FII’s selling.
Global Developments
Global equity indices ended the week in positive territory, supported by NVIDIA’s strong earnings, growing expectations of a Fed rate cut, and an upward revision in U.S. GDP to 3.3%, reflecting economic resilience.
U.S. stock indices—the Dow Jones Industrial Average and S&P 500—rose by 0.77% and 0.83%, respectively, compared to the previous week.
In Asia, South Korea’s KOSPI posted a marginal gain of 0.13%, while Japan’s Nikkei recorded a stronger increase of 1.03%.
European indices were mildly positive, with the FTSE 100 up 0.31% and Germany’s DAX rising 0.17%
Among Asian markets, the Shanghai Composite and Hong Kong’s Hang Seng Index led gains, rising 1.24% and 1.34%, respectively.
Other Markets:
Source: www.nseindices.com; MCX Gold Prices; Economic times, Bloomberg.
Data for week ended on September 5, 2025.
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