It was a big week for the markets as the Fed decision outcome is now out of the way with a 25bps rate cut. However, the big question remains—what’s next? The 25bps cut was widely expected and already priced in, but there is ongoing debate about how many more cuts lie ahead, especially in 2026. Notably, the Fed’s dot plot shows only one rate cut for that year.
The announced rate cut is likely to encourage Foreign Institutional Investors (FIIs) to infuse money into the Indian market. Another interesting development is that, in September, Indian equity markets have been relative outperformers, which hasn’t been the case for a long time. We highlighted this in our earlier communications, noting that despite tariff announcements, global markets traded at higher levels while only the Indian market witnessed underperformance. Historically, Indian markets tend to move in parallel with global markets, so a catch-up was expected.
### Market Performance Overview
Analyzing recent market performance and its driving forces, the benchmark Nifty has advanced in 12 of the last 15 sessions. From the recent swing low, it is up close to 900 points, marking a strong rally. This recovery has been supported by the return of institutional buying and short position coverage, alongside positive domestic developments such as GST reforms.
Recall, the short position in Nifty contracts has decreased to 86% from a peak of 92.60%, which was the highest ever recorded.
There were media reports suggesting that the US might roll back 25% tariffs beginning in November, potentially reducing them further to 10-12%. While this is positive news, markets traded in the red on Friday. We believe the timeline for resolving these tariff issues is around 8-10 weeks, during which uncertainty will persist. Given that markets dislike uncertainty and considering the strong rally so far, a certain pullback is normal.
However, the implementation of GST 2.0 and the US President’s reaffirmation of strong ties with India amid ongoing trade discussions are positive triggers for the medium to longer-term outlook.
With this context, here is our **Weekly Market Review**.
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### How Did the Markets Fare Last Week?
For the week ended Friday, Indian benchmark indices closed in the green. Both Sensex and Nifty rose by 0.8%, while Midcaps outperformed with gains close to 1.5%.
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### What Might Keep the Markets Busy in the Coming Week?
The upcoming week will be crucial with several important domestic and global data releases:
– **Domestic Data:** Bank Loan Growth, Forex Reserves, HSBC Composite, Manufacturing, and Services PMI.
– **Global Data:** Speeches by Fed officials, S&P Global Manufacturing and Composite PMI, Q2 GDP data, Initial Jobless Claims, and Core Personal Consumption Expenditure among others.
Additionally, with new GST rates effective from 22nd September, the initial surge in buying and pent-up demand ahead of the festive season will be closely watched, as these trends are likely to influence market sentiment.
Progress in India-US trade talks and any related commentary will also keep markets on alert. Lastly, foreign institutional buying trends and short covering activity will remain important near-term factors.
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### Crude Oil and FII Flows
Brent crude oil prices edged higher to $68 per barrel, as the market continues to factor in supply risks due to ongoing attacks on Russian oil infrastructure in Ukraine, which disrupt Russian exports.
While FIIs have been net buyers on some days, overall, they remained net sellers for the week.
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### Sector in Focus
**Realty, PSU Banks, and IT sectors** remained in focus during the week.
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### Stocks That Remained in Focus During the Week
– **Adani Group Stocks:** SEBI cleared Gautam Adani, Rajesh Adani, and Adani Group firms—Adani Ports & SEZ, Adani Power, and Adani Enterprises—of all Hindenburg allegations. The regulator found no evidence of insider trading, market manipulation, or shareholding violations under the SEBI Act.
– **Allied Blenders:** ABD Maestro Pvt. Ltd., the luxury arm of Allied Blenders and Distillers, launched its premium spirits at Bengaluru’s Kempegowda International Airport’s Duty-Free Travel Retail. Plans are underway to expand to Delhi and Mumbai airports soon.
– **Metropolis Healthcare:** Led by Ameera Shah, Metropolis Healthcare completed its fourth acquisition in 10 months by acquiring Ambika Pathology Laboratory in Kolhapur. The NABL-accredited lab will be developed into a mini regional reference lab, expanding the company’s regional presence and offering over 4,000 advanced diagnostic tests.
– **MOIL:** MOIL exported its first 54,600-tonne shipment of low-grade manganese ore to Indonesia from Visakhapatnam. Appointed as a State Trading Enterprise (STE) by the Government of India, MOIL will now handle all exports of manganese ore below 46% Mn grade, boosting India’s global trade presence and foreign earnings.
– **RailTel:** RailTel Corporation received a work order worth Rs 105.74 crore (including tax) from the Bihar Education Project Council for the supply and installation of smart classrooms/KGBVs. The project is to be completed by 14th January 2026.
– **Colab Platforms:** Colab Platforms entered the drone technology sector through a nonbinding MoU with RRP Drones Innovation Pvt Ltd. The partnership aims to create a Special Purpose Vehicle (SPV) to develop AI-powered autonomous drones for sectors including border security, law enforcement, industry, agriculture, and environmental protection. India’s drone market is projected to reach ₹1.95 lakh crore by 2030.
– **Angel One:** Following in-principle approval by its Board, Angel One incorporated “ANGEL ONE LIVWELL LIFE INSURANCE LIMITED” on 11th September 2025, through collaboration with LivWell Holding Company Pte, with an initial investment of Rs 1.04 billion. This move is set to expand the company’s presence in the broader financial services ecosystem.
– **Quality Power:** Quality Power Electrical Equipments secured a purchase order worth approximately Rs 11.5 crore (excluding taxes) for supplying reactors for the STATCOM Project. The order is to be executed within 12 months.
– **Krystal Integrated Services:** Krystal won a significant three-year contract valued at approximately Rs 168 crore from the Director of Medical Education, Government of Andhra Pradesh. The company will provide trained housekeeping personnel, modern cleaning equipment, and tech-enabled processes to maintain high hygiene standards across government hospitals, medical colleges, and hostels.
– **Ethos:** Ethos Limited opened a new exclusive Ethos Watch Boutique at Nexus Select Citywalk, Saket, New Delhi. This launch strengthens its luxury brand portfolio and presence in a key retail market, aiming to bring top global watch brands closer to Indian customers.
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### Closing Thoughts
Conviction is the key! Despite short-term uncertainties, positive domestic reforms, supportive global factors, and strong institutional activity position the Indian markets well for the medium to long term.
Stay tuned for more updates in our next weekly market review.
https://www.freepressjournal.in/business/weekly-market-review-top-stocks-in-focus-for-the-week-ended-19th-sep25
