Weekly Update- 05 September 2025

NIFTY50

The index ended the week with a 1.29% gain, settling at 24,741. The week began on a strong positive note as bullish momentum, aided by broad-based market participation, drove the index higher in the early part of the week. A significant boost came on Thursday with a gap-up opening after the government announced GST reforms, effective from September 22, which lifted overall market sentiment and reinforced optimism across sectors. However, the latter part of the week saw profit booking at higher levels, leading to sideways consolidation on Thursday afternoon and Friday as traders opted to secure gains. Despite this, the weekly closing was firm, highlighting underlying strength in the market. Going ahead, immediate support is placed around 24,500, while resistance is likely to emerge near the psychological mark of 25,000. The view remains constructive, and buying on dips near support levels with controlled risk continues to be the preferred strategy.

BANKNIFTY

The index ended the week with a 0.86% gain, settling at 54,115. The week opened on a positive note with strong bullish momentum on Monday, followed by a continuation of the uptrend that was further reinforced on Thursday with a gap-up move after the government’s GST reform announcements, effective from September 22. However, profit booking emerged in the latter part of the week, leading to sideways consolidation over the last two sessions. Despite closing the week in the green, the index largely underperformed relative to the benchmark, reflecting selective participation across sectors. Going forward, key resistance is placed near 55,000, while immediate support is seen around 53,600. A sustained move above resistance could revive momentum, whereas dips towards support may provide buying opportunities with a controlled-risk approach.

Best Performing Sector of the week

The Nifty Metals was best performing sector of this week

Major gainers include:-

NTIONALUM: up by 13.94%

SAIL: up by 8.93%

TATASTEEL: up by 8.54%

HINDCOPPER: up by 6.23%

Worst Performing Sector of the week

The Nifty IT was worst performing sector of this week

Major losers include:-

COFORGE: down by 3.83%

PERSISTENT: down by 3.23%

HCLTECH: down by 2.46%

WIPRO: down by 2.3%

Important News:-

• Prime Minister Narendra Modi’s symbolic handshake with President Xi Jinping in China, combined with fresh tax cuts at home, is fueling optimism that Indian equities will finally narrow the gap with their emerging-market peers.

• Indian equity benchmarks wrapped up the week on a solid note, buoyed by strong domestic macroeconomic data and ongoing policy reforms. The Nifty gained 1.29% to settle at 24,741, while the Sensex climbed 1.13% to close at 80,710.

• US stocks ended slightly lower on Friday as investors weighed economic worries against optimism over interest rate cuts by the Federal Reserve after data showed U.S. job growth weakened sharply in August.

• The Goods and Services Tax (GST) cut—slashing rates on dairy, packaged snacks, stationery, and farm equipment to 5%—is redirecting investor focus toward mid- and small-cap counters often overlooked by headline-driven large sectors and stocks. The move, designed to ease household budgets while unlocking new consumption opportunities across rural and semi-urban India, is raising hopes of acceleration in growth in certain pockets of mass consumption.

• The GST Council’s sweeping rate cuts across sectors have ignited a market rally, with auto, FMCG, cement, insurance, and consumer durable stocks in sharp focus. Two-wheelers, small cars, cement, insurance, and packaged goods are now significantly cheaper. Analysts expect stronger consumption, improved margins, and GDP growth. Key beneficiaries include M&M, ITC, Hero MotoCorp, UltraTech, and SBI Life.