Indian markets performed strongly last week as optimism around GST tax cuts fueled sector-specific rallies. NIFTY 50 gained 1.3% while NIFTY MIDCAP SELECT was up 2.6%. Auto stocks were the key performers, extending their gains. IT stocks continued to see selling pressure. NIFTY BANK witnessed a modest revival as it recovered after 2 consecutive weeks of losses. NIFTY FMCG notched its 3rd consecutive week of gain.
Nifty 50 records a strong week
Weekly Performance: 1.3%
| date | open | high | low | close |
| 2025-09-05 | 24818.8 | 24832.3 | 24621.6 | 24741.0 |
| 2025-09-04 | 24980.8 | 24980.8 | 24708.2 | 24734.3 |
| 2025-09-03 | 24616.5 | 24737.1 | 24533.2 | 24715.1 |
| 2025-09-02 | 24653.0 | 24756.1 | 24522.3 | 24579.6 |
| 2025-09-01 | 24432.7 | 24635.6 | 24432.7 | 24625.1 |
| 2025-08-29 | 24466.7 | 24572.4 | 24404.7 | 24426.8 |
Source: NSE
Figure: Recent performance
Source: NSE
The NIFTY 50 index closed the week up from the previous week by 1.29%. M&M was the top performer, gaining 11.5%. Either Motors, Bajaj Finance, Hindalco and Hero Motors were among the other major contributors to the index’s gain. Meanwhile, IT stocks witnessed selling pressure and were among the worst performers. Infosys Ltd fell 1.84%, HCL Tech was down 1.11% and TCS declined 1.10%.
Optimism surrounding proposed tax changes under GST 2.0, consumption-led stimulus, and associated earnings/recommendation upgrades drove the positive sentiment. In addition to direct beneficiaries like auto and consumer durables, the sentiment also lifted indirect beneficiaries like Bajaj Finance. On the other hand, IT services stocks likely witnessed sector rotation-related selling.
NIFTY MIDCAP SELECT – A bounce back
Weekly Performance: 2.6%
| date | open | high | low | close |
| 2025-09-05 | 12784.0 | 12867.1 | 12696.0 | 12778.2 |
| 2025-09-04 | 12949.2 | 12949.2 | 12720.8 | 12738.8 |
| 2025-09-03 | 12724.8 | 12787.8 | 12661.3 | 12773.6 |
| 2025-09-02 | 12750.0 | 12789.8 | 12654.0 | 12709.4 |
| 2025-09-01 | 12488.0 | 12725.3 | 12478.0 | 12715.7 |
| 2025-08-29 | 12527.6 | 12629.1 | 12431.8 | 12450.2 |
Source: NSE
Figure: Recent performance
Source: NSE
The NIFTY MIDCAP SELECT index made a strong weekly gain of 2.63% and bounced back after the previous week’s sharp fall. The reversal was fuelled by Idea, BSE, Dixon, Yes Bank, and Voltas. Idea and BSE were the top performers and were up more than 10%. On the other hand, IT stocks witnessed selling pressure. The top laggards list included Coforge, Persistent Systems, Indus Towers, and OFSS.
In the recent past, the index has been volatile. It gained in 3 of the past 5 weeks while it lost in 2. GST reform optimism was the overarching theme in mid-caps, too. However, stock-specific events in BSE and Idea propelled them to the top gainers list. Fundraising hopes and news flow about potential relief related to government dues boosted the sentiment in Idea.
NIFTY IT – Tariff tensions and sector rotation play spoilsport
Weekly Performance: -1.6%
| date | open | high | low | close |
| 2025-09-05 | 35234.8 | 35331.5 | 34343.4 | 34635.9 |
| 2025-09-04 | 35580.6 | 35599.3 | 35093.4 | 35143.1 |
| 2025-09-03 | 35807.9 | 35832.0 | 35293.1 | 35474.9 |
| 2025-09-02 | 35767.0 | 36061.1 | 35541.2 | 35737.9 |
| 2025-09-01 | 35255.3 | 35787.7 | 35255.3 | 35740.6 |
| 2025-08-29 | 35491.6 | 35575.2 | 35130.4 | 35181.2 |
Source: NSE
Figure: Recent performance
Source: NSE
NIFTY IT index finished down 1.55% for the week ending 5th September 2025. Larsen Toubro Infotech and Mphasis accelerated 1.21% and 0.34% as the top gainers on the index. But their advances were offset by declines in other index components, led by Infosys, which slid 1.70% and was the biggest drag on the index. Among other losers were HCL Technologies, Tata Consultancy Services, and Coforge, which shed 2.46 per cent, 1.18 per cent, and 3.83 per cent, respectively.
NIFTY IT has fallen for 2 consecutive weeks. The recent fall is especially notable against the gains in several sectors and broader markets. A sector rotation out of IT into those benefiting from GST reform has likely led to its recent underperformance. In addition, tariff tensions continue to remain an overhang.
NIFTY BANK – A modest revival
Weekly Performance: 0.9%
| date | open | high | low | close |
| 2025-09-05 | 54308.1 | 54308.1 | 53719.6 | 54114.6 |
| 2025-09-04 | 54379.6 | 54450.6 | 53971.9 | 54075.4 |
| 2025-09-03 | 53630.8 | 54136.1 | 53561.8 | 54067.6 |
| 2025-09-02 | 54038.2 | 54160.9 | 53578.0 | 53661.0 |
| 2025-09-01 | 53658.1 | 54035.9 | 53658.1 | 54002.4 |
| 2025-08-29 | 53660.4 | 54086.0 | 53606.4 | 53655.6 |
Source: NSE
Figure: Recent performance
Source: NSE
The Banking index had some reason to cheer as it ended the week with a gain of 0.86% as opposed to a decline in the previous two weeks. IDFC First Bank was the top gainer in the index, up 6.78 per cent. Conversely, AU Small Finance Bank was the top loser, falling by 3.31%. The advance-decline ratio was 9:3 in favor of advances, indicating a reasonably wide participation.
Despite the positive performance during the week, it still underperformed the broader markets. As investors shifted positions into GST reform beneficiaries, direct beneficiaries performed better. Banking stocks have been a key underperformer in the recent past as sector rotation and FII outflows impacted them significantly.
NIFTY ENERGY – A reversal of fortunes:
Weekly Performance: 2.0%
| date | open | high | low | close |
| 2025-09-05 | 34357.9 | 34441.8 | 34104.2 | 34297.9 |
| 2025-09-04 | 34788.4 | 34803.1 | 34246.9 | 34284.7 |
| 2025-09-03 | 34571.1 | 34715.4 | 34562.6 | 34626.6 |
| 2025-09-02 | 34287.4 | 34720.4 | 34248.5 | 34490.5 |
| 2025-09-01 | 33785.2 | 34200.2 | 33727.2 | 34155.3 |
| 2025-08-29 | 33689.9 | 33862.8 | 33481.9 | 33638.6 |
Source: NSE
Figure: Recent performance
Source: NSE
NIFTY ENERGY index increased by 1.96% for the week ending 5th September 2025. The lead gainers were Coal India, CG Power, Power Grid, Suzlon, and Reliance, which cumulatively contributed a large chunk to the index jump. Conversely, Power India, GVT&D, Adani Ensol, Triveni Turbine, and SJVN were the laggards.
THE NIFTY ENERGY Index has been a key underperformer in the recent past. Against that background, last week’s performance is a notable one as the index outperformed broader markets. Also, the market breadth was positive as 80% of the index stocks advanced.
Company-specific news and optimism about GST-related tax cuts in the renewable energy space propelled the top gainers. CG Power (top gainer) launched India’s first OSAT semiconductor factories.
NIFTY FMCG – A meek performance
Weekly Performance: 0.3%
| date | open | high | low | close |
| 2025-09-05 | 57176.1 | 57217.8 | 56012.0 | 56292.1 |
| 2025-09-04 | 58485.1 | 58485.1 | 57019.6 | 57104.1 |
| 2025-09-03 | 56955.9 | 57063.2 | 56702.9 | 56969.2 |
| 2025-09-02 | 56210.2 | 56882.6 | 56191.7 | 56806.6 |
| 2025-09-01 | 56140.0 | 56212.1 | 55901.3 | 56175.2 |
| 2025-08-29 | 55687.2 | 56565.0 | 55594.4 | 56141.9 |
Source: NSE
Figure: Recent performance
Source: NSE
The NIFTY FMCG index closed the week with a minor increase of 0.27%. Against a significant outperformance in the previous two weeks, the index underperformed the broader NIFTY 50 last week. The top five gainers on the index included Nestle India, Britannia Industries, Dabur India, Colgate-Palmolive India, and Emami Ltd. On the flip side, VBL, ITC, Hindustan Unilever, Godrej Consumer Products, and Radico Khaitan were the index losers. Market breadth was slightly positive as 9 stocks advanced while 6 declined.
Despite the modest gain in the overall index, top performers witnessed strong rallies. The top 5 stocks were up 4-5%. GST Council’s tax slab rationalization was the key news that propelled many of the FMCG stocks. While some had rallied earlier and witnessed profit booking after strong rallies, others continued to extend their gains.
NIFTY AUTO – Top Performing Index
Weekly Performance: 5.4%
| date | open | high | low | close |
| 2025-09-05 | 26147.7 | 26382.3 | 26080.1 | 26320.6 |
| 2025-09-04 | 26700.2 | 26729.7 | 25964.2 | 25994.8 |
| 2025-09-03 | 25701.7 | 25796.0 | 25535.2 | 25775.4 |
| 2025-09-02 | 25710.8 | 25807.8 | 25529.9 | 25584.9 |
| 2025-09-01 | 24998.7 | 25685.4 | 24998.7 | 25660.0 |
| 2025-08-29 | 25142.6 | 25197.5 | 24891.8 | 24960.8 |
Source: NSE
Figure: Recent performance
Source: NSE
The NIFTY AUTO index surged 5.45% during the week. It was led by M&M and Eicher Motors. They gained 11.5% and 7.5% respectively. While all the stocks were in the green, 2-wheelers witnessed the strongest rallies. 4 of the top 5 gainers were 2-wheeler firms. NIFTY AUTO has been one of the best-performing indices in the recent past. It was up in 4 of the past 5 weeks. Driven by optimism around lower taxes due to GST reform, many auto stocks witnessed strong rallies and extended their gains.
NIFTY PHARMA – Another week of underperformance
Weekly Performance: 0.6%
| date | open | high | low | close |
| 2025-09-05 | 21927.3 | 22139.8 | 21842.2 | 21924.8 |
| 2025-09-04 | 22156.7 | 22156.7 | 21850.8 | 21915.4 |
| 2025-09-03 | 21741.2 | 21985.2 | 21697.2 | 21959.6 |
| 2025-09-02 | 21813.9 | 21845.1 | 21676.6 | 21719.9 |
| 2025-09-01 | 21820.4 | 21916.8 | 21691.4 | 21778.8 |
| 2025-08-29 | 21806.3 | 21894.6 | 21696.9 | 21804.1 |
Source: NSE
Figure: Recent performance
Source: NSE
The NIFTY PHARMA index closed with a gain of 0.55% for the week, on mixed performance by the constituents of the index. Glenmark Pharmaceuticals was the biggest gainer in the index, up 6.65%, followed by Lupin, Mankind Pharma, Zydus Lifesciences, and Biocon. On the flip side, Cipla, Divi’s Laboratories, IPCA Laboratories, Abbott India, and Sun Pharmaceutical Industries were the top losers, with Cipla being the worst performer of the pack. Market breadth was favorable as only 7 of the 20 stocks fell while 13 stocks gained.
In addition to the overall positive sentiment in the market lifting pharma stocks, stock-specific events also impacted top gainers. For instance, Biocon had completed a USFDA inspection with relatively minor observations.
NIFTY REALTY – A modest gain yet underperforms the broader market
Weekly Performance: 0.2%
| date | open | high | low | close |
| 2025-09-05 | 886.5 | 889.2 | 865.0 | 872.5 |
| 2025-09-04 | 899.8 | 904.3 | 880.8 | 882.8 |
| 2025-09-03 | 888.7 | 891.2 | 881.2 | 889.7 |
| 2025-09-02 | 884.1 | 895.8 | 881.0 | 886.2 |
| 2025-09-01 | 867.2 | 881.3 | 867.0 | 879.8 |
| 2025-08-29 | 878.8 | 886.1 | 868.0 | 870.8 |
Source: NSE
Figure: Recent performance
Source: NSE
THE NIFTY REALTY held index was barely up for the week. Yet it is a notable improvement over the sharp fall it witnessed in the previous week. The biggest gainers in the index were DLF, Phoenix Mills, Anant Raj, Godrej Properties, and Oberoi Realty. On the other hand, Prestige Estates, Lodha Developers, Brigade Enterprises, and Sobha were the top losers, with Prestige Estates losing nearly 3.3% for the week. Market breadth was slightly positive as it witnessed 6 advances vs 4 declines.
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