Weekly Market Review & Top Stocks In Focus For The Week Ended 12th Sep’25

The benchmark indices, Nifty and Sensex, ended at a near one-month high, crossing the 25,000 psychological mark. Over the past eight sessions, Nifty has rallied more than 500 points supported by the government’s GST reforms, expectations of a US Fed rate cut, and improving sentiment around US–India trade talks.

Last week, we highlighted that the GST reforms announced are a historic Diwali gift after the already announced no income tax up to Rs 12 lakh under the new regime in Budget 2025 and a 100 bps cut in repo rate as well as CRR rate in 2025, and all of this will go a long way in making the economy stronger. These bold steps will yield positive results, leading to higher consumption driven by lower taxes, which will translate into increased consumption that supports domestic demand and thereby fuels GDP growth. If we analyse the historical data, lower taxes boost revenue as volume rises because of higher purchasing power. With companies announcing that they will pass on the benefit to end-users by slashing their prices, it has, in fact, boosted sentiment just ahead of the festive season.

During the week, we have also observed positive confidence from US President Trump, as he stated India and the US are continuing negotiations to address the trade barriers between the two nations. Also, Trump looks forward to speaking with Prime Minister Narendra Modi in the upcoming weeks. Trump feels certain that there will be no difficulty in coming to a successful conclusion for both great countries. PM Modi also responded by saying India and the US are close friends and natural partners, and he, too, remains confident that trade negotiations will pave the way for unlocking the limitless potential of both countries. To summarise, from escalation to de-escalation, both Trump and Modi sounded confident about resolving trade issues soon, which gave a booster shot to the markets.

Additionally, Fitch Ratings has revised India’s FY26 GDP growth forecast upward by 40 bps to 6.9%, indicating strong domestic demand. The Systematic Investment Plan (SIP) inflows also remained robust in August, exceeding Rs 28,000 crore, despite headwinds such as the 50% US tariff and FIIs selling, indicating strong momentum in economic growth.

If we look at the global markets' performance, the world market trades at higher levels, despite tariff announcements in other regions. However, it is only the Indian market that has witnessed underperformance. Indian markets historically have more or less moved in parallel with global markets, and hence we believe that Indian markets should also follow suit as the current valuations appear attractive from a medium to longer-term horizon.

With this, let me present to you our weekly market review.

How Did the Markets Fare Last Week?

On a weekly basis ended on Friday, the Indian benchmark indices ended in green. Sensex and Nifty were up 1.5% each while Midcaps were up close to 1.6% during the week. 

What Might Keep the Markets Busy Into the Next Week?

The coming week will be crucial for the market, as key macro economic indicators will be released not just locally but also from global markets. These are expected to drive market movement in the next few days. Starting with Indian markets, we have the key India CPI and WPI numbers for Aug, FX Reserves, Trade Deficit Data, etc. On the global front, we have the important FOMC Meeting outcome on 17th September. This event will be watched globally as the outcome will pave the way for growth projections, interest rate projections, inflation projections, etc. With the recent US inflation data meeting expectations of 2.9%, it has reinforced confidence among market participants that the Fed will cut its rate soon, as early as the upcoming meeting. Apart from this, we have the Retail Sales Number, Industrial Production, and Initial Jobless Claims Data.

Lastly, the ongoing trade negotiations between India and the US, any positive outcome and comments from the respective leaders and ministers will also be watched very closely. Currently, American Ambassador to India, Sergio Gor, stated that the US President has invited Commerce Minister Piyush Goyal to meet with US Trade Representative Jamieson Greer in Washington next week. All of this will keep markets busy.

Crude and FII Flows

Brent crude oil prices gave back some of their recent gains, declining to $66/bbl as a worsening market outlook undercut concerns about potential geopolitical disruptions to supplies. On the other hand, FIIs continue to remain net sellers for the week.

Sector in Focus

Auto, IT, and PSU Banks remained in focus during the week.

Stocks That Remained in Focus During The Week

Lodha Developers:

• The Maharashtra government has signed an MoU with Lodha Developers to develop a Green Integrated Data Centre Park at Palava in the Mumbai Metropolitan Region. The project involves a proposed investment of Rs 30,000 crore, with a planned 2 GW capacity. It is expected to attract multiple domestic and global players and generate around 6,000 direct and indirect jobs.

HFCL:

• The Andhra Pradesh government has approved the allotment of 1,000 acres in Madakasira, Sri Sathya Sai District, for a defence manufacturing facility. In Phase I, 329 acres will be allotted, followed by 671 acres in Phase II. The facility will produce artillery shells, TNT filling, multimode hand grenades, and other defence products.

NBCC:

• NBCC has signed an MoU with RIICO to develop the Rajasthan Mandapam and allied infrastructure near Jaipur International Airport. The project, worth about Rs 3,700 crore, represents a significant collaboration between the Government of India and the Government of Rajasthan.

Jupiter Wagons:

• Jupiter Tatravagonka Railwheel Factory Pvt Ltd, has received a Letter of Acceptance (LOA) dated 9th September 2025 from Ministry of Railways, Railway Board. This LOA pertains to the supply of a total 9,000 LHB Axlesfor FIAT-IR Bogies, with an aggregate order value of approximately Rs 113 crore.

Rainbow Children:

• The company has inaugurated a new ~100 beds spoke hospital, located in Rajahmundry, Andhra Pradesh. As on date, Rainbow Children along with its subsidiaries has an existing total bed capacity of ~2,185 beds in India. The occupancy was 40.2% of its capacity during Q1FY26. They have proposed capacity expansion of 100 beds thus taking total bed capacity to ~2,285 beds. The total project cost is approx. Rs 60 crore and will be funded through internal accruals.

Tega Industries:

• Tega Industries, along with Apollo Funds, has signed a term sheet to acquire Molycop from American Industrial Partners at an enterprise value of ~$1.5 billion. The acquisition will position Tega as a global leader in mining consumables, strengthening its portfolio in grinding media, mineral processing, and material handling.

Thermax:

• The company has invested Rs 115 crore in First Energy Private Limited (FEPL), wholly owned subsidiary for the purpose of further investment in First Energy 10 Private Limited (FE10), wholly owned subsidiary of FEPL. FEPL is engaged in renewable energy. It is uniquely positioned to assist customers in their journey towards green energy and offers sustainable solutions, including solar, wind, wind-solar hybrid and storage batteries in the commercial and industrial segment.

Arvind Ltd:

• Arvind Limited, in partnership with H&M Group and Deven Supercriticals, has commissioned India’s first supercritical CO₂ dyeing machine at its Ahmedabad facility. The patented SUPRAUNO® technology replaces water with supercritical CO₂, enabling up to 76% water, 67% energy, and 90% chemical savings, while sharply cutting effluent discharge compared to traditional dyeing methods.

SWSOLAR:

• SWSOLAR has received a Letter of Interest from a leading Private IPP for a BOS EPC package for development of a 300 MW AC / 420 MWp DC Solar PV Project along with 220/33 kV Pooling Substation in Rajasthan, India. Total value of the contract is approximately Rs 415 crore including O&M and taxes. The order is a testament to the strong execution capabilities, and the company continues to build on gross order inflows which have exceeded Rs 2,400 crore this year.

Quality Power:

• The company’s material step-down subsidiary, ENDOKS ENERJİ ANONİM ŞİRKETİ, has received two significant orders for supply of its FACTS system from a European customer for a steel plant. The combined value of these two orders is approximately Rs 75.19 crore. The estimated delivery of the same is over the next year.