It was a big week for the markets as the Federal Reserve’s decision on interest rates is now out of the way. The Fed announced a 25 basis points (bps) rate cut, which was widely expected and already priced in by the markets. However, the big question remains: what’s next? There is ongoing debate about how many more cuts are anticipated, especially for 2026, since the dot plot currently shows only one rate cut.
The recently announced rate cut is likely to encourage Foreign Institutional Investors (FIIs) to infuse more money into the Indian market. Another interesting development is the performance of the Indian equity markets in September. The Indian markets have been relative outperformers this month, a trend that hasn’t been seen for a long time.
This aligns with our earlier communication, wherein we highlighted that despite tariff announcements, global markets traded at higher levels, but the Indian market witnessed underperformance. Historically, Indian markets tend to move in parallel with global markets, suggesting that Indian markets were poised to follow the global uptrend.
### Market Performance Analysis
Analyzing the market performance and its driving forces, the benchmark Nifty index has been up in 12 of the last 15 sessions. From the recent swing low, Nifty has gained close to 900 points, marking a strong run.
The return of institutional buying and covering of short positions, supported by positive domestic developments such as GST reforms, has been instrumental in this upward momentum. Notably, short positions in the contract have decreased to 86%, down from the peak of 92.60%, which was the highest ever recorded.
Moreover, media reports suggest that the US may roll back the 25% tariffs starting November. Tariffs might reduce to just 10-12%, which is positive news. Despite this, markets ended Friday’s session in the red. We believe the timeline for resolving the tariff issue is about 8–10 weeks, during which uncertainty will persist. Since markets dislike uncertainty, a short-term pullback after such a strong rally is normal.
That said, the implementation of GST 2.0 and the US President’s reaffirmation of strong ties with India amid ongoing trade discussions are positive triggers from a medium to long-term perspective.
### Weekly Market Review
#### How Did the Markets Fare Last Week?
For the week ending on Friday, Indian benchmark indices closed firmly in the green. The Sensex and Nifty were up by 0.8% each, while Midcaps outperformed with gains close to 1.5%.
#### What Might Keep the Markets Busy Next Week?
The week ahead will be important for both domestic and global markets with several key data releases lined up.
On the domestic front, investors will be watching:
– Bank Loan Growth data
– Forex Reserves figures
– HSBC Composite, Manufacturing, and Services PMI
Globally, the focus will be on:
– Speeches by Federal Reserve officials
– S&P Global Manufacturing and Composite PMI
– Q2 GDP data
– Initial Jobless Claims
– Core Personal Consumption Expenditure numbers, among others
Additionally, the rollout of new GST rates from 22nd September and the pent-up buying ahead of the festive season will be closely monitored as potential drivers of market sentiment.
Progress in India-US trade talks and any new commentary will also keep markets engaged. Lastly, foreign institutional buying and their short covering activities will remain important near-term factors.
### Crude Oil & FII Flows
Brent crude oil prices edged higher to $68 per barrel as the market focused on supply risks. The ongoing conflict in Ukraine continues to disrupt Russian oil infrastructure and exports.
Despite some sessions of FII buying, foreign investors remained net sellers for the week.
### Sector in Focus
Realty, PSU Banks, and IT sectors remained in the spotlight during the week.
### Stocks That Remained in Focus During the Week
– **Adani Group Stocks:**
SEBI cleared Gautam Adani, Rajesh Adani, and Adani Group companies — Adani Ports & SEZ, Adani Power, and Adani Enterprises — of all Hindenburg allegations. The regulator found no evidence of insider trading, market manipulation, or shareholding violations under the SEBI Act.
– **Allied Blenders:**
Allied Blenders and Distillers’ luxury arm, ABD Maestro Pvt. Ltd., launched its premium spirits at Bengaluru’s Kempegowda International Airport duty-free retail. Plans are underway to expand to Delhi and Mumbai airports soon.
– **Metropolis Healthcare:**
Under Ameera Shah’s leadership, Metropolis Healthcare completed its fourth acquisition in 10 months by acquiring Ambika Pathology Laboratory in Kolhapur. The NABL-accredited lab will be developed into a regional reference lab, offering 4,000+ advanced diagnostics services to Kolhapur and nearby Tier-2 and Tier-3 towns.
– **MOIL:**
MOIL achieved a major milestone by exporting its first 54,600-tonne shipment of low-grade manganese ore to Indonesia from Visakhapatnam. Appointed as a State Trading Enterprise (STE), MOIL will handle all exports of manganese ore below 46% Mn grade, boosting India’s global trade presence and foreign earnings.
– **RailTel:**
RailTel received a work order worth Rs 105.74 crore (including taxes) from the Bihar Education Project Council for the supply and installation of smart classrooms/KGBVs in Bihar. The project completion deadline is 14th January 2026.
– **Colab Platforms:**
Colab Platforms has entered the drone technology sector via a non-binding MoU with RRP Drones Innovation Pvt Ltd. They plan to create a Special Purpose Vehicle (SPV) to develop AI-powered autonomous drones for border security, law enforcement, industry, agriculture, and environmental protection. India’s drone market is projected to reach ₹1.95 lakh crore by 2030, driven by government support and increasing adoption.
– **Angel One:**
Pursuant to the in-principle approval granted on 23rd July 2025, Angel One incorporated “ANGEL ONE LIVWELL LIFE INSURANCE LIMITED” on 11th September 2025 with an investment of Rs 1.04 billion. This will help expand Angel One’s presence in the broader financial services ecosystem and drive long-term value creation.
– **Quality Power:**
Quality Power Electrical Equipments won a purchase order worth approximately Rs 11.5 crore (excluding taxes) for supplying reactors for the STATCOM project. The order is a significant domestic market deal, with a 12-month execution timeline.
– **Krystal Integrated Services:**
Krystal secured a three-year contract valued at around Rs 168 crore from the Department of Medical Education, Government of Andhra Pradesh. The contract involves deploying trained housekeeping personnel and modern cleaning equipment to ensure high hygiene standards across government hospitals, medical colleges, hostels, and healthcare institutions.
– **Ethos:**
Ethos Limited opened a new exclusive Ethos Watch Boutique at Nexus Select Citywalk, Saket, New Delhi. This launch enhances Ethos’s luxury brand presence and brings top global watch brands closer to Indian customers, reinforcing its vision to deliver premium luxury experiences.
### Closing Thoughts
Conviction is the key! With positive domestic reforms underway, improving FII sentiment, and encouraging global signals, Indian markets are positioned well for growth in the medium to long term. However, investors should remain mindful of short-term uncertainties, especially related to tariff negotiations and global economic data.
Stay focused and keep a disciplined approach as the market navigates through this phase.
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*This concludes our weekly market review.*
https://www.freepressjournal.in/business/weekly-market-review-top-stocks-in-focus-for-the-week-ended-19th-sep25
