Weekly Market Review & Top Stocks In Focus For The Week Ended 5th Sep’25

It was a roller coaster ride for the markets this week with one day up and the next day down. The important event that caught everyone’s attention was the GST reform that took place and interestingly the meeting that was scheduled from 3-4 September but to everyone’s surprise the outcome was delivered on 3rd itself where the committee cleared the next-generation reforms under the 8-year old indirect tax regime.

Prime Minister Modiji in his Independence Day speech spoke about their intention to bring reforms in GST and now the new regime focuses only on 5% and 18% slabs with an additional tariff of 40% for super luxury and sin goods like tobacco, pan masala, and cigarettes.

We see this as a historic Diwali gift after the already announced no income tax upto Rs 12 lakh under the new regime in Budget 2025 and 100bps cut in repo rate as well CRR rate in 2025. All of this will go a long way in making the economy stronger. These bold steps witnessed in 2025 will be positive resulting in higher consumption led by lower tax translating to higher consumption that will support domestic demand and thereby fuelling GDP growth. If we analyse the historical data then lower taxes boost revenue as volume rises because of higher purchasing power.

This next-gen reform is in response to the recent 50% tariff imposed by the U.S. on Indian products, and the GST Council has taken key steps by reducing rates across a broad range of sectors that includes autos, fmcg, insurance, medicines, and daily essentials that is expected to provide much relief to households, farmers, and industries. This GST reform targets labour-intensive sectors, agriculture, and healthcare that are key pillars of India’s economic engine.

On the macro economic front as well, strong economic indicators continue to support bullish sentiment for Indian markets with the services sector PMI surging to a 15-year high above 60 in August, while the manufacturing PMI climbed to a 17-year high above 59, reflecting robust demand. Additionally the Q1FY26 GDP growth hitting a 5-quarter high of 7.8% ahead of consensus estimates underscores the economy’s momentum.

All of this looks positive from the medium to longer-term horizon as risk-reward looks favourable though in the near term relentless FII selling and worries over higher US tariffs continue to weigh on sentiment. With this let me present to you our weekly portfolio review.

How Did the Markets Fare Last Week?

On a weekly basis, the Indian benchmark indices ended in green. Sensex and Nifty were up 1.3% each while Midcaps were up close to 2.0% during the week.  

What Might Keep the Markets Busy Into the Next Week?

The key important trigger to watch is Foreign Institutional Investors (FII) positioning because they have been selling persistently in the Indian Markets and it is adding pressure. Apart from these, worry over higher U.S. tariffs also weighs on the sentiment. Hence any positive development and/or additional commentary by President Trump will be very watchful.

In terms of data release on the domestic front we have Bank Loan Growth, FX Reserves while globally releases like Nonfarm Payrolls, Producer Price Index, CPI data, Initial jobless claims and Monthly budget statement will be monitored as well.      

Crude and FII Flows

Brent Crude Oil Prices traded around $67/bbl as traders remain anxious that OPEC+ may agree to boost supplies, US data pointed to a slowdown, and an industry estimate showed higher crude stockpiles at a key storage hub. On the other hand, FIIs continue to remain Net Sellers for the week.

Sector in Focus

Auto, Metal and Consumption remained in focus during the week.

Stocks That Remained in Focus During The Week

Sterlite Technologies:

Sterlite Technologies Inc. (STI), STL’s U.S. subsidiary, has developed the world’s slimmest optical fiber for data centers, hyperscalers, and telecom providers. The new IBR cable achieves a record jetting performance of ~4,700 ft in under 20 minutes. It features bend-insensitive HD G.657.A2 200-micron fiber with industry-standard sheathing for top installation efficiency.

Bharat Forge:

Agneyastra, a step-down subsidiary, signed an agreement to purchase approx. 950 acres in Madakasira, Andhra Pradesh, for a Defence Energetics Manufacturing Complex. The facility will include plants for high explosives, ammunition filling, gun propellants, and future expansion into rockets and missile energetics. This acquisition supports Bharat Forge’s growth and expansion in the Defence sector.

Railtel Corporation:

The company has informed exchanges that it has received the work order from Ministry of Home Affairs for supply installation and commissioning of IP based CCTV Surveillance at MHA amounting to Rs 14.94 crore (Excluding Tax). The said orders are expected to be executed by 1st September 2030. 

Campus Activewear:

The Company has acquired Land and Building from M/s Nainipanel Industries Pvt Ltd to expand its existing capacity for the manufacturing of semi-finished goods (Sole and /or Upper) and assembly of footwear. The total Cash Consideration for this transaction is Rs 74.75 crore. The company is only acquiring Land and Building and no shareholding stake in Entity is being acquired by the company.  

Yasho Industries:

Yasho Industries signed a 15-year agreement with a global MNC to supply lubricant additives from its Pakhajan facility. They will receive an advance to build the plant, with construction planned over the next 12-18 months. Supply is expected to begin by Q4FY27, with pricing based on an agreed formula.

Varun Beverages:

The Board approved investing up to 26% in Jager Renewables Two Pvt Ltd to generate and supply solar power in Rajasthan. The company will use this solar power for its facilities in Kota, Alwar, Jaipur, Jodhpur, and Bhiwadi. This move aims to reduce power costs and promote environmentally friendly energy.

Zydus Lifesciences:

Zydus Lifesciences Global FZE signed an exclusive licensing and supply deal with Synthon BV for Ozanimod Capsules in the U.S. market. Synthon has a pending USFDA application for the drug, targeting relapsing multiple sclerosis, with tentative approval expected within 30 months. Zydus will handle commercialization, benefiting from a shared 180-day market exclusivity upon launch.

DCM Shriram:

DCM Shriram and Aarti Industries have entered into a long-term agreement for chlorine supply, with DCM Shriram Chemicals as the exclusive supplier to AIL’s upcoming Jhagadia facility. The partnership includes building a state-of-the-art underground chlorine pipeline for safety and reliability. Once operational, AIL’s chlorine offtake will rise by 200 tonnes per day, in addition to the current 150 tonnes per day.

Waaree Energies:

Waaree Energies to enter into a Share Subscription and Shareholders Agreement for acquisition of 64% of the share capital of Kotson’s Private Limited (“KPL”) for a total consideration of Rs 192 crore, subject to customary closing conditions. KPL established in 1978, is in the business of designing, manufacturing and supplying advanced transformer solutions. The acquisition will enable vertical integration, market expansion, and access to the electrical ecosystem for projects, enhancing control over the supply chain and quality of the product.

Tata Consultancy Services (TCS):

TCS expanded its 15-year partnership with Tryg through a seven-year €550M deal to simplify and standardize operations in Denmark, Sweden, and Norway. TCS will drive Tryg’s technological transformation using AI and cloud solutions. This collaboration aims to accelerate Tryg’s growth and strategic transformation across Europe.

Closing Thoughts

Risk comes from not knowing what you’re doing!