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Indian Markets Gain on Auto, Banks, Pharma; IPOs and Fed Meet in Focus

By Mandar in Indian Market Insights —

Indian Stock Market Weekly Review: September 12, 2025

The Indian stock market maintained its positive trajectory last week, with the Nifty50 index experiencing a 1.5% increase for the week ending September 12, 2025. This marks a second consecutive weekly gain, with the index closing above the crucial 25,000-point mark.

Key highlights from the past week include:

  • Market Performance: A sustained rally, evidenced by a 1.5% gain in the Nifty50.
  • Key Index Level: Closing above the 25,000-point psychological level.
  • Sectoral Support: Robust performance from domestic sectors like auto, banking, and pharmaceuticals counteracted significant FII selling.

Factors Driving the Market Rally

The market's upward movement was fueled by a combination of factors:

  • Sectoral Leadership: Auto, banking, and pharmaceutical stocks spearheaded the gains, showcasing a widespread recovery across various sectors.
  • Earnings Optimism: Anticipation of stronger earnings in the second half of the financial year contributed to the positive sentiment.
  • Policy Support: Recent GST rate rationalization and expectations of monetary easing created a favorable environment.
  • Market Volatility: The India VIX fell to a record low, signaling reduced near-term uncertainty and bullish investor sentiment.

Upcoming IPO Activity

Investor interest is heightened by a wave of upcoming IPOs, reflecting strong corporate confidence and policy support:

  • IPO Intent: Over a dozen companies have announced their intention to launch IPOs in the coming weeks, aiming to raise approximately Rs 10,000 crore.
  • Key IPOs: Noteworthy IPOs include Jain Resource Recycling (Rs 2,000 crore), Park Medi World hospital chain (Rs 1,260 crore), Saatvik Green Energy (Rs 1,150 crore), and TruAlt Bioenergy (Rs 1,000 crore).
  • Policy Influence: Corporate confidence is boosted by policies such as income tax relief and GST reforms.

Global and Domestic Market Drivers

Investors should be aware of both global and domestic factors affecting market performance:

  • Global Watch: The US Federal Reserve's upcoming monetary policy meeting, where a 25 basis points rate cut is expected. Developments in India-US trade negotiations also warrant attention.
  • Technical Analysis: The Nifty is consolidating recent gains, with the potential for further rallies if it maintains support near 24,850 points and breaks through resistance around 25,150 points.
  • Time Clusters: Important time periods during the trading week are identified where potential momentum shifts could occur.

Market Outlook

In conclusion,

  • FII Outflows: Despite significant outflows from foreign institutional investors.
  • Optimistic Outlook: A cautious but optimistic outlook is emerging due to strong domestic sector performance, substantial IPO activity, and supportive policy measures.