Weekly Market Wrap (8–12 Sept 2025): IT Shines, Banks Struggle
Introduction
The Indian stock market witnessed a week of mixed sentiment between 8 and 12 September 2025. While frontline indices like the Nifty 50 and Sensex managed to hold their ground, sectoral divergences played a major role in shaping market momentum. IT and Auto stocks provided much-needed support, but banking and metal counters kept a lid on broader market gains.
This weekly market wrap provides a complete overview of index performance, sectoral moves, FII/DII flows, and technical outlook for the upcoming week. It also highlights the top gainers and losers of the week to help traders and investors make informed decisions.
Weekly Index Performance
The market ended the week on a balanced note with frontline indices consolidating after strong moves in August. Key highlights are as follows:
- Nifty 50: Closed at 24,790, down 0.2% for the week. The index oscillated between 24,500 and 25,050, reflecting range-bound activity.
- Sensex: Ended at 81,380, slipping 0.15% week-on-week. Heavyweights like Reliance and HDFC twins weighed on the index.
- Bank Nifty: Underperformed and settled at 54,920, losing nearly 0.8% for the week. Private banks were the biggest drag.
Despite muted frontline performance, midcaps (+0.6%) and smallcaps (+0.3%) continued to see stock-specific action. India VIX cooled to 13 levels, signaling stable sentiment.
Sectoral Performance
This week highlighted a clear divergence among different sectors:
- IT Sector: The star performer with a 2.3% weekly gain. Infosys, TCS, and HCL Tech led the rally as global demand outlook improved.
- Autos: Added 1.5% supported by festive season demand and strong monthly sales figures from Maruti Suzuki and Tata Motors.
- Banks: The biggest drag (-1.1%). Private banks like HDFC Bank and Kotak Bank saw selling pressure, while PSU banks held steady.
- Metals: Fell 2.0% due to weak global commodity prices and muted demand from China.
- FMCG: Stable with +0.4% gains, ITC and HUL provided support on strong rural demand expectations.
- Pharma: Flat (+0.1%) with mixed performance across frontline stocks.
FII/DII Flows
Foreign Institutional Investors (FIIs) remained cautious and turned net sellers with outflows of nearly ₹3,200 crore during the week. On the other hand, Domestic Institutional Investors (DIIs) absorbed much of this selling, recording net inflows of around ₹2,850 crore. This highlights how domestic support is keeping the market range-bound despite foreign pressure.
Technical Outlook for Next Week
The Nifty 50 continues to trade within a consolidation band of 24,500–25,100. A breakout above 25,100 may open the doors for a rally towards 25,500, while a breakdown below 24,500 could invite further profit booking.
Key Levels:
- Nifty: Support at 24,650 / 24,500, Resistance at 25,100 / 25,300
- Bank Nifty: Support at 54,700 / 54,400, Resistance at 55,300 / 55,700
- Sensex: Support at 81,000, Resistance at 81,800
Indicators like RSI (52) and MACD suggest a neutral bias, meaning traders should focus on stock-specific opportunities rather than expecting a directional move in the index.
Global Cues and Investor Sentiment
The week from 8–12 September 2025 was also influenced by global market developments. US indices such as the Dow Jones and Nasdaq traded with volatility as investors awaited fresh economic data, including inflation prints and Federal Reserve commentary. European markets remained cautious due to mixed signals on economic recovery, while Asian peers like Nikkei and Hang Seng witnessed stock-specific rallies.
For Indian equities, crude oil prices and the movement of the US dollar index continued to play a crucial role. Brent crude hovered around $85 per barrel, keeping energy and transport-related stocks in focus. A stronger dollar limited foreign fund inflows into emerging markets, which is why FIIs continued to sell Indian equities.
Investor sentiment in India remained largely positive thanks to robust domestic macroeconomic indicators. GDP growth projections for FY26 stayed strong at 6.8% and inflation remained under control. This provided confidence to DIIs, who absorbed heavy FII selling pressure during the week.
Analysts believe that as long as India’s domestic consumption and corporate earnings trajectory remain intact, short-term FII outflows may not significantly impact long-term bullish momentum. Retail investors also continued to show resilience by investing through SIPs, reflecting steady confidence in the market.
Global Market Cues
Global trends played a significant role in shaping Indian equity market sentiment during the week. US indices like the Dow Jones and NASDAQ traded in a mixed fashion as investors monitored inflation data and the upcoming Federal Reserve meeting. European markets held steady, while Asian peers like the Nikkei and Hang Seng saw volatility amid currency weakness and slowdown concerns in China.
Crude oil prices stabilized around $83 per barrel, which helped keep energy stocks steady. Meanwhile, gold prices hovered near $1,940 per ounce as investors balanced safe-haven demand against rising US bond yields.
Investor Sentiment
Overall sentiment in the Indian markets remained cautiously optimistic. Retail investors continued showing interest in midcap and smallcap stocks, while institutional players focused on frontline indices. Broader participation ensured resilience even when heavyweight banks dragged the index lower.
Derivatives data indicated that traders built short positions near 25,000 Nifty strike prices, signaling hesitation at higher levels. However, put writing at 24,700 highlighted strong support zones for the coming sessions.
Key Takeaways of the Week
- Nifty: Closed at 24,790, down 0.2% for the week but holding above key support.
- Sensex: Ended at 81,380, slipping 0.15% amid weakness in banking stocks.
- Bank Nifty: Lost 0.8%, reflecting pressure on private lenders.
- Sector Trends: IT and Autos provided support, while Metals and Banks dragged.
- FII/DII Activity: FIIs net sold ₹3,200 crore, DIIs absorbed with ₹2,850 crore inflows.
- Global Cues: Stable crude and mixed US data shaped overall direction.
- Outlook: Range-bound trading expected between 24,500–25,100 with stock-specific moves.
FAQs — Weekly Wrap (8–12 Sept 2025)
Q1: Where did Nifty close this week? → 24,790.
Q2: How did Sensex perform? → Closed at 81,380.
Q3: Which sector led the rally? → IT sector with 2.3% gains.
Q4: Which sector was weakest? → Metals fell 2% on weak global demand.
Q5: What was the FII/DII activity? → FIIs sold ₹3,200 cr, DIIs bought ₹2,850 cr.
Q6: What is next week’s outlook? → Range-bound with support at 24,500 and resistance at 25,100.
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