Date: Monday, September 1, 2025

Key Highlights

The BSE Sensex ended 554.84 points (0.70%) higher at 80,364.49, while the NSE Nifty50 rose 198.20 points (0.81%) to 24,625.05, snapping a three-day losing streak.  India’s Q1 FY26 GDP growth came in at 7.8%, well above the RBI’s forecast of 6.5%, marking the strongest growth in five quarters.  The HSBC India Manufacturing PMI rose to 59.3 in August from 59.1 in July, signalling sustained strength in industrial activity.  A U.S. federal appeals court ruled that much of President Donald Trump’s tariff authority lacked legal standing — though many tariffs remain in place until mid-October. This ruling added optimism for trade-sensitive sectors. 

Market Breadth & Internals

Sector performance: Auto, Consumer Durables, IT and Metals outperformed.  Lagging sectors: Pharma, Media registered losses or flat behaviour; large consumer staples underperformed.  Mid- & Small-caps: Broader indices showed strong gains—Midcap100 up ~1.97%, Smallcap ~1.57%.  Among top gainers: Mahindra & Mahindra, Tata Motors, Trent; among top losers: Sun Pharma, ITC, Hindustan Unilever. 

Global / External Cues

Global macro factors remained mixed: trade policy uncertainty persists, especially regarding U.S. tariffs; positive spill-overs from favorable U.S. court rulings helped.  Domestic macro has been a tailwind: strong GDP, favourable PMI, supporting investor sentiment.

What This Means for Investors

Renewed Confidence in Economic Recovery: The strong GDP print and resilient manufacturing suggest that underlying domestic demand remains solid. Investors may increasingly favor consumption, industrials, and auto sectors. Trade Policy Watch: The U.S. court ruling tempers some tariff risk, but many trade barriers remain. Companies heavily exposed to U.S. imports/exports should monitor developments. Rotation Opportunities: Given leadership in Auto, IT, Metals, and Consumer Durables, there may be healthy rotation from defensives to cyclicals. Risk Management: While markets have responded positively, overbought concerns or profit booking could surface. Key resistance & support levels in Nifty/Sensex should be watched.

Disclaimers & Forward View

This information is for educational purposes only. It does not constitute investment advice. Market conditions can change rapidly, especially given global uncertainties (tariffs, inflation, central bank policy).

Looking ahead:

Data to watch: U.S. non‐farm payrolls, upcoming PMI and inflation prints globally. Domestic catalysts: GST council meetings, fiscal policy announcements, corporate earnings for Q1 FY26.