Weekly market update, Aug 22, 2025

The Indian equity markets logged a weekly gain driven by Nifty Auto and consumer durables over expectations of GST rate cuts and S&P’s recent sovereign rating upgrade. The sentiment was further lifted by India’s record-high August composite PMI, signaling strong manufacturing and services growth. However, the market sentiment was cautious due to the looming threat of a 25% tariff on India, with a deadline set for Aug. 27, 2025. Globally, uncertainty persists due to mixed US economic data and ambiguity surrounding the US Federal Reserve’s interest rate decisions. On weekly basis, Key benchmark indices BSE Sensex and Nifty 50 gained 0.88% and 0.97% respectively. The broader market indices outperformed the benchmarks, as both the BSE Midcap and Smallcap rose by 2.03% and 2.34% respectively. On sectoral front, most sectoral indices ended higher except BSE PSU and BSE Bankex. Nifty Auto gains over 5% for the week, best weekly gain since May 2025.

According to experts, In the coming week, US Fed rate cut, Global cues, FIIs flows, RBI rate cut, and Russia-Ukraine war news remain key factors dictating market trends. The annual gala of the American Central Bank has triggered hopes for a US Fed rate cut in 2025, putting the US dollar rates and the US bond market under pressure.

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