Market snapshot – Index/benchmark
| Indices | Closing value | Daily change |
|---|---|---|
| Nifty 50 | 24,625.05 | ↑ 0.81 % |
| Sensex (BSE 30) | 80,364.49 | ↑ 0.70 % |
| BSE Mid‑cap | 47,609.00 (approx) | ↑ 1.64 % |
| BSE Small‑cap | 52,216.64 | ↑ 1.49 % |
| Nifty Bank | 54,002.45 | ↑ 0.65 % |
| Nifty IT | 35,740.65 | ↑ 1.59 % |
| Nifty Auto | 22,620.70 (approx) | ↑ 2.80 % |
| India VIX (volatility index) | ~12.4 | ↓ 3.0 % (lower volatility) |
| USD/INR | around ₹82.5 per US$ | marginally stronger |
| Market breadth | 1,945 stocks advanced vs 862 declines | Positive breadth |
Note: closing values are approximate because some sectoral indices are rounded to available data.
Sectoral performance
| NSE/BSE sectoral index | Performance on 1 Sep 2025 |
|---|---|
| Auto | ↑ 2.80 % – strongest performing sector; led by upbeat monthly sales, farm‑equipment demand and GST‑cut hopes. |
| Consumer Durables | ↑ 2.08 % – demand for discretionary products remained strong. |
| Metals | ↑ 1.64 % – benefitted from higher base‑metal prices and stronger Chinese demand. |
| Information Technology | ↑ 1.59 % – U.S. PCE data raised hopes of a Fed rate cut, supporting IT exporters. |
| Oil & Gas | ↑ 1.35 % – crude prices steady; upstream names gained. |
| PSU Bank | ↑ 1.11 % – state‑run lenders rose on strong credit growth. |
| Realty | ↑ 1.04 % – robust housing demand and falling yields. |
| Financial Services/Bank | ↑ 0.65–0.70 % – heavyweights recovered but under‑performed broader indices. |
| Pharma | ↓ 0.12 % – only notable loser; profit‑taking pulled down defensive stocks. |
| Media | ↓ 0.32 % – marginal decline. |
Top gainers and losers (Nifty 50 constituents)
| Top gainers | Price move | Key driver |
|---|---|---|
| Bajaj Auto | ↑ ~4.0 % | August sales jumped and rural demand remained robust. |
| Mahindra & Mahindra (M&M) | ↑ ~3.5 % | Tractor and SUV volumes beat expectations; optimism over EV initiatives. |
| Hero MotoCorp | ↑ ~3.2 % | Strong motorcycle sales and improved margins. |
| Tata Motors | ↑ ~2.6 % | Strong domestic CV/EV volumes; Jaguar‑Land Rover outlook improved. |
| NTPC/Titan/Trent | ↑ 2.3 – 2.6 % | Power demand remained strong (NTPC); robust jewellery sales (Titan); retail expansion (Trent). |
| Top losers | Price move | Reason |
|---|---|---|
| Sun Pharma | ↓ ~1.9 % | Profit‑booking after recent rally. |
| ITC | ↓ ~1.0 % | Mild correction amid concerns over cigarette tax hike rumours. |
| Hindustan Unilever | ↓ ~0.5 % | Higher input cost worries; investors rotated into cyclicals. |
| IndusInd Bank | ↓ ~0.5 % | Minor profit‑taking; valuations deemed rich. |
| Adani Enterprises/Bharti Airtel | ↓ 0.3–0.5 % | Stock‑specific consolidation after strong August performance. |
Key statistics and macro backdrop
- Gross Domestic Product (Q1 FY26): India’s first‑quarter GDP grew 7.8 % year‑on‑year (vs consensus around 6.7 %), reflecting strong domestic consumption and investment spending.
- Manufacturing PMI: India’s manufacturing Purchasing Managers’ Index climbed to 59.3 in August, the highest since February 2008, indicating robust factory activity.
- Institutional flows: The latest available data (29 Aug 2025) show Foreign Institutional Investors (FIIs) net sold ₹8,312 crore, while Domestic Institutional Investors (DIIs) net bought ₹11,488 crore in the cash market. Persistent FII outflows remain a headwind, but strong DII inflows and retail participation supported prices.
- Advance/decline ratio: With 1,945 advancing shares versus 862 declines, market breadth was widely positive and mid‑ and small‑cap stocks outperformed large caps.
- Market capitalisation: Investor wealth (BSE market capitalisation) rose by over ₹5 lakh crore during the session as indices recovered from three days of losses.
- Volatility: India VIX slipped below 12.5, signalling reduced near‑term volatility.
What moved the market
- Robust domestic growth and upbeat economic data: The release of India’s Q1 FY26 GDP growth at 7.8 % beat expectations and boosted confidence in the economy. August manufacturing PMI at 59.3, the highest in 17 years, signalled broad-based expansion in factory output.
- Auto sales and consumption optimism: Monthly auto sales data showed strong growth across two‑wheelers, passenger cars and tractors. The possibility of GST rationalisation in the upcoming meeting and festive‑season demand buoyed consumer‑durable and auto stocks.
- Dovish global cues: U.S. Personal Consumption Expenditure (PCE) inflation data for July cooled to 0.2 % month‑on‑month and 2.6 % year‑on‑year, fuelling expectations of a Federal Reserve rate cut later this year. European PMI data showed the eurozone factory sector expanding for the first time since mid‑2022. These factors lifted risk appetite globally and particularly benefitted India’s export‑oriented IT stocks.
- Tariff and policy developments: A U.S. appeals court ruled that former President Trump’s tariff hikes were illegal, although the duties remain until mid‑October. This raised hopes of eventual relief for Indian exporters. Additionally, talk of rationalising India’s multiple GST slabs and simplifying taxes bolstered the consumption theme.
- Liquidity support from domestic investors: Despite sustained FII selling, DIIs and retail investors continued to accumulate equities. This liquidity, especially in mid‑ and small‑caps, helped the broader market outperform the blue‑chip indices.
- Profit‑taking in defensives: Some defensive sectors, particularly pharmaceuticals and consumer staples, witnessed profit‑booking as investors rotated funds into cyclical sectors like autos, metals and durables.
Global cues
- Wall Street – The S&P 500 and Dow Jones were near record highs after softer U.S. PCE inflation data, but traders remained cautious ahead of U.S. jobs data due later in the week. Bond yields edged higher but expectations of an autumn rate cut persisted.
- Europe – Eurozone manufacturing PMI returned to expansion for the first time since mid‑2022, supporting European equities. However, investors awaited further data on inflation and growth and remained mindful of the impact of U.S. tariffs on European exports.
- Asia – In Asia, Japanese markets consolidated as investors locked in gains in high‑flying tech stocks. Chinese equities were resilient due to policy support and hopes of further stimulus. Oil prices traded in a narrow range around US$83/bbl; a small rise in U.S. crude inventories and concerns over higher supply offset worries about Russian supply disruptions.
- Currencies and commodities – The U.S. dollar index held steady around 98.1; the Indian rupee appreciated marginally to around ₹82.5 per US$. Gold remained firm near a four‑month high on rate‑cut bets, while silver hit a 14‑year high. These moves indicated cautious optimism across global markets.
Stocks to watch and corporate updates
| Company/stock | Update and rationale |
|---|---|
| Bharat Heavy Electricals Ltd (BHEL) | Signed a licensing agreement with the Defence Research & Development Organisation (DRDO) to produce fused‑silica radomes used in missiles and fighter aircraft, signalling entry into high‑value defence components. |
| RBL Bank | Seeking shareholder approval to raise up to ₹6,500 crore through a combination of equity and debt instruments; reflects efforts to strengthen capital adequacy and support growth. |
| PG Electroplast (PG Technoplast) | Its subsidiary signed a memorandum of understanding with the Maharashtra government to set up a ₹1,000 crore consumer‑electronics facility under the state’s industrial policy. |
| NHPC | Revised its borrowing plan and will raise up to ₹10,000 crore through debt to fund ongoing hydropower projects. |
| Torrent Power | Received a letter of award from the Madhya Pradesh government to develop a 1,600 MW coal‑based power project, positioning it for expansion in conventional power generation. |
| Ather Energy (unlisted) | Announced plans to expand its retail network from ~200 to 700 outlets by FY 26 after launching new electric scooters, signalling aggressive growth in India’s EV two‑wheeler market. |
| Sterlite Technologies | A U.S. court ordered its Indian subsidiary to pay US$96.5 million in damages in a contract dispute. Although the company plans to appeal, the sizeable liability may keep the stock volatile. |
| Other themes to monitor | Investors remain focused on Reliance Industries’ annual general meeting (AGM) outcomes, including updates on the Jio AirFiber roll‑out and energy transition plans; HDFC Bank’s loan growth guidance after the HDFC merger; and the progress of micro‑cap initial public offerings (IPOs) in September. |
Technical view and outlook for tomorrow (2 September 2025)
- Trend: After three days of declines, the Nifty 50 formed an inverted hammer pattern on the daily chart and reclaimed 24,600. The rebound came on above‑average volumes and strong market breadth, suggesting bulls regained near‑term control. However, the index still trades below its 20‑day and 50‑day exponential moving averages, and the relative strength index (RSI) remains near 40, signalling that the medium‑term momentum is fragile.
- Key levels for Nifty 50:
- Resistance: The index faces immediate resistance at 24,650–24,700. A decisive break above 24,850 could open the way to the psychological 25,250–25,500 range. The 50‑day EMA near 24,850 remains a critical hurdle.
- Support: Immediate support lies at 24,500, followed by 24,300–24,250. A fall below 24,250 could drag the index towards 24,000.
- Key levels for Bank Nifty:
- Resistance: Resistance is placed around 54,500–54,600. A breakout above this zone could push the banking index towards 55,200–55,500.
- Support: Initial support lies at 53,600–53,500, followed by a stronger base near 52,900–52,400. A sustained drop below 53,500 may trigger further downside.
- Expected market tone: The broader trend remains range‑bound with a slight positive bias. As the index has reclaimed support and momentum indicators are improving, traders may look for opportunities to buy on dips near support levels. However, valuations are elevated and FIIs remain net sellers, so gains could be capped around 24,850–25,000. Market participants will closely watch U.S. jobs data, crude‑oil price movement and fresh domestic macro indicators. The tone is likely to remain cautiously optimistic, with auto, capital‑goods, power and select mid‑cap stocks continuing to attract buying interest while defensive sectors may remain subdued.
