As august closes on a turbulent note, the indian stock markets enter september facing domestic policy challenges and global trade uncertainty. Here’s everything investors need to know about Sensex, Nifty, and sector outlook for the week.
1. Sensex & Nifty Close august in the Red
- Sensex: Fell 270.92 points (0.34%) to 79,809.65
- Nifty 50: Dropped 74.05 points (0.30%) to 24,426.85
- Both indices recorded their third consecutive session of decline, with Nifty losing 1.38% in august – its second straight monthly loss.
Investor sentiment was dampened by fresh U.S. tariffs on indian goods, including duties on discounted Russian crude, threatening nearly $45 billion in exports.
2. Technical Weakness Signals
- Nifty slipped below 20-day, 50-day, and 100-day EMAs, indicating weakening momentum.
- Support levels: 24,300–24,250, with a potential downside to 24,000 if breached.
- Resistance levels: 24,650–24,700.
- Bank Nifty fell nearly 4% in August, confirming a bearish pattern with immediate support at 53,600–53,500.
3. FII & DII Activity
- Foreign Institutional Investors (FIIs): Net short positions in index options worth Rs 7,559 crore, futures Rs 1,239 crore. Long-short ratio at a record low of 8.3%.
- Domestic Institutional Investors (DIIs): Inflows of Rs 1.56 lakh crore acted as a buffer against heavy FII outflows (~Rs 94,500 crore since July).
- Historical trends suggest low FII long exposure could signal a future market rebound.
4. GST Reform Hopes
- GST Council Meeting: september 3-4 in New Delhi.
- Focus: Rationalizing GST into a simplified two-rate structure.
- Sectors likely to benefit: FMCG, Infrastructure, and other domestic consumption-driven industries.
- Analysts caution: Fiscal pressures remain, but India’s strong Q1 GDP could cushion market shocks.
5. Sector Outlook
- FMCG: Relative strength expected with GST rate cut support.
- Auto & Consumer Durables: Likely to benefit from increased consumption and rollovers in september series.
- Private Banks & IT: Weak rollover data may lead to continued underperformance.
- CPSEs & Realty: Lagging sectors with muted performance.
6. Stocks in Focus
Analysts highlight several stock picks with strong technical setups despite broader weakness:
- Britannia, CG Power, Dalmia Bharat
- Syrma SGS, Lux Industries, CarTrade Tech
- Jamna Auto, Avantel
These counters could see momentum as the market digests tariff updates, GST reform, and domestic consumption cues.
Final Takeaway
The first week of september 2025 is shaping up to be volatile. Global trade tensions, FII selling, and domestic policy changes like GST reform will influence market direction. Investors should watch technical support and resistance levels, track sectoral performance, and stay updated on policy developments to navigate this challenging market environment..jpg)
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