The week ending 20 September 2025 brought mixed signals for Indian equity markets. While global uncertainties and geopolitical tensions weighed on sentiment, domestic policy tailwinds—like GST rationalisation and SEBI rulings—helped select sectors outperform. Investors saw strong moves in PSU banks, autos, and FMCG, while IT stocks lagged on global cues.

Key Policy & Regulatory Moves

1. SEBI’s Partial Clean Chit for Adani

SEBI dismissed some allegations from the Hindenburg report, triggering a sharp rally in Adani stocks. The group’s market cap jumped by nearly ₹69,000 crore in one session, though other probes remain ongoing.

2. FIIs Bet Big on Auto Stocks

Ahead of GST cuts, FIIs pumped in ₹4,500 crore into auto counters, expecting a surge in demand as showroom activity accelerates.

3. GST 2.0 Boost for FMCG

Consumer giants like HUL are expected to benefit from GST reforms, rural demand recovery, and a push for premium product categories.

4. Push for Corporate Bond Market Growth

Regulators introduced measures to expand corporate bond index derivatives, aiming to deepen liquidity and risk management options.

5. IPO Storm Ahead

Over 25 IPOs worth ~₹6,300 crore are scheduled to open soon, including Anand Rathi Share and Ganesh Consumer.

Sector Trends

PSU Banks & Power: Strong rally on policy clarity and infrastructure optimism.
FMCG: Positive rural demand sentiment and GST tailwinds driving upside.
Autos: Pre-GST cut momentum supports bullish outlook.
IT Stocks: Dragged down by weak U.S. demand and Fed uncertainty.

Mid & Small Caps: Mixed performance; cautious optimism.

Market Sentiment & Technicals

FIIs: Selective buying in autos and FMCG, cautious elsewhere.
Geopolitics: U.S. sanctions on Iran’s Chabahar Port added pressure to indices mid-week.
Rupee: Ended marginally stronger, though downward pressure persists.
Nifty Outlook: Resistance near 25,500, support around 25,150–25,250. A breakout could decide near-term direction.

Outlook & What to Watch

Macro Data: September PMI, inflation, and IIP figures will be key.
IPO Performance: Investor response to upcoming IPOs will signal risk appetite.

Global Cues: U.S. Fed policy, dollar strength, and global trade moves remain crucial.

Key Takeaways for Investors

Favourable Sectors: Autos, FMCG, PSU banks, and power stocks are well-placed.
Risk Zones: IT and global export-linked sectors may stay volatile.

Strategy: Focus on diversification, avoid stretched valuations, and monitor global triggers closely.

🔔 Disclaimer: This content is for informational purposes only and should not be taken as investment advice. Stock market investments are subject to market risks. Please consult your financial advisor before investing.

✍️ Published by Luster Capital – your partner in stock market research, mutual fund distribution, and financial planning.

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