The stock market ended the week on a positive note, with the Nifty closing above 24,700 and the Sensex above 80,700. The rise was mainly because of strong economic data, like a 7.8% jump in GDP and higher PMI numbers, showing steady growth in manufacturing and services. Investors also felt more confident after the government cut GST rates on basic goods, two-wheelers, and school items to help increase spending.
In the week ended on Friday, 5 September 2025, the S&P BSE Sensex rallied 901.11 points or 1.12% to settle at 80,710.76. The Nifty 50 index jumped 314.15 points or 1.28% to settle at 24,741. The BSE Mid-Cap index shed 0.10% to close at 45,459.77. The BSE Small-Cap rose 0.09% to end at 52,752.31.
Weekly Index Movement:
The domestic equity benchmarks staged a strong comeback on Monday, snapping a three-day losing streak, as upbeat GDP data boosted investor confidence. The S&P BSE Sensex advanced 554.84 points or 0.70% to 80,364.49. The Nifty 50 index added 198.20 points or 0.81% to 24,625.05.
Equity benchmarks ended in the red on Tuesday, snapping early gains as profit booking and the weekly expiry of derivatives contracts on the NSE pulled indices lower. The S&P BSE Sensex declined 206.61 points or 0.26% to 80,157.88. The Nifty 50 index dropped 45.45 points or 0.18% to 24,579.60.
Equity benchmarks ended with strong gains on Wednesday as upbeat services PMI data lifted sentiment. The S&P BSE Sensex added 409.83 points or 0.51% to 80,567.71. The Nifty 50 index advanced 135.45 points or 0.55% to 24,715.05.
The frontline equity benchmarks ended with modest gains on Thursday after the government unveiled sweeping tax cuts under a major Goods and Services Tax (GST) overhaul. The S&P BSE Sensex added 150.30 points, or 0.19%, to close at 80,718.01, while the Nifty 50 advanced 19.25 points, or 0.08%, to 24,734.30.
The key equity benchmarks ended sideways on Friday. The S&P BSE Sensex shed 7.25 points or 0.01% to 80,710.76. The Nifty 50 index rose 6.70 points or 0.03% to 24,741.
Economy:
The seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index (PMI) stood at 59.3 in August compared with 59.1 in July 2025. The upward movement in the headline figure largely reflected an acceleration in growth of production volumes.
India’s economy picked up momentum in the April–June quarter, defying expectations of slower growth, even as higher U.S. tariffs on Indian exports loom as a potential drag in the months ahead.
Gross domestic product (GDP) grew 7.8% in the quarter, the strongest pace in five quarters, compared with 7.4% in the previous three-month period, according to government data released Friday.
Gross value added (GVA) — considered a better gauge of underlying economic activity since it excludes indirect taxes and subsidy transfers — rose 7.6% during the same period, up from 6.8% in the prior quarter.
India collected 1.86 trillion rupees ($21.26 billion) as goods and services tax in August, 6.5% higher than the same period last year, the government said on Monday.
The seasonally adjusted HSBC India Services PMI Business Activity Index was up from 60.5 in July to 62.9 in August. This indicated the steepest rate of expansion since June 2010. Demand buoyancy, efficiency gains and greater inflows of new business were some of the reasons firms gave for the upturn.
August data highlighted a broad-based pickup in growth of output across India's manufacturing and service sectors. Subsequently, the HSBC India Composite PMI Output Index rose from 61.1 in July to 63.2 in August, indicating the sharpest pace of expansion in over 17 years.
GST Reforms:
The GST Council approved the significant rate cuts on several essential items. Effective from September 22nd, the new rates aim to boost consumption by shifting to a two-slab structure of 5% and 18%, abolishing the 12% and 28% rates. A special 40% GST slab has been introduced for super luxury and sin goods.
In a major relief to the automobile and two-wheeler sector, GST on small cars and motorcycles with engine capacity up to 350cc has been reduced from 28% to 18%, a move aimed at boosting demand in the mass mobility segment. Additionally, parts and accessories of motorcycles up to 350cc will now attract 18% GST instead of 28%.
On the other hand, the levy on premium motorcycles exceeding 350cc has been sharply raised from 28% to 40%, making high-end bikes costlier.
The GST Council exempted individual life and health insurance policies from the 18% Goods and Services Tax (GST).
Several fast-moving consumer goods (FMCG) currently taxed at 12% or 18% will now fall under the 5% bracket. Further, GST on tractors (except road tractors for semi-trailers above 1800cc) has been redcued to 5% from 12%. For road tractors with engines above 1800cc, the tax was lowered to 18% from 28%. Additionally, GST on tractor tyres and parts was slashed from 18% to 5%.
In education segment, the council reduced GST on pencils, crayons, pastels, drawing charcoal, chalk sticks, and tailor’s chalk from 12% to nil. Exercise books, graph books, laboratory notebooks, and notebooks too have been exempted from GST, compared with 12% earlier. Additionally, boxes, pouches, wallets, and writing compendiums of paper or paperboard containing assorted stationery will now attract 5% GST instead of 12%.
Auto sales data:
Hero MotoCorp rose 5.40%. The company said that it has dispatched 553,727 motorcycles and scooters in August 2025, reflecting an 8% growth compared to August 2024.
Maruti Suzuki India rose 0.77%. The company’s total sales marginally shed 0.60% to 180,683 units in August 2025 as against 181,782 units sold in August 2024.
SML Isuzu slipped 10.17%. The company's total sales fell 15% year-on-year (YoY) to 842 units in August 2025 from 990 units in the same month last year.
Force Motors fell 9.05%. The company said that its domestic sales jumped 6.60% to 2,295 units in August 2025, as against 2,153 units sold in August 2024.
Bajaj Auto gained 5.29%. The auto maker has reported 5% increase in total auto sales for August 2025, selling 4.17 lakh units as against 3.97 lakh units sold in August 2024.
VST Tillers Tractors shed 0.08%. The company reported a 1.87% increase in total sales to 4,499 units in August 2025, up from 4,416 units sold in August 2024.
Stocks in Spotlight:
One Mobikwik Systems soared 33.57%. The Abu Dhabi Investment Authority (ADIA) fully exited the digital payments provider through block deals on Monday, 1 September 2025.
According to NSE block deal data, ADIA sold 16.44 lakh shares at an average price of Rs 238.45 apiece, taking the transaction size to Rs 39.21 crore. The sale accounted for 2.10% of Mobikwik’s equity, marking the sovereign wealth fund’s complete exit from the company as per the June 2025 shareholding pattern. The buyers included BofA Securities Europe SA, which purchased 5 lakh shares (0.64% equity) at Rs 243.61 per share, and S I Investments & Broking, which acquired 4 lakh shares (0.51% equity) at Rs 248.42 per share.
Adani Ports and Special Economic Zone (APSEZ) added 0.63%. The company reported handling 41.9 MMT of cargo in August 2025, marking an 16% year-on-year (YoY) increase, primarily driven by a 29% YoY growth in container volumes.
Puravankara shed 0.27%. The company announced the acquisition of redevelopment rights for Samrat Ashok Co-operative Housing Society, a prime residential society located in Malabar Hill, Mumbai. The acquisition was made through its wholly owned subsidiary, Purva Blue Agate. The project, spread across 1.43 acres, offers a development potential of 0.7 million square feet. The estimated revenue potential of the project stands at Rs 2,700 crore.
Lupin jumped 2.27%. The company received US Food and Drug Administration (USFDA) approval for the abbreviated new drug application (ANDA) for Risperidone extended-release injectable suspension.
Global Markets:
Europe:
Euro zone inflation edged up to 2.1% in August, according to the latest flash data from Eurostat. Core inflation, which excludes volatile food, energy, alcohol, and tobacco prices, remained steady at 2.3% from July. The services inflation rate—a closely watched indicator—slightly eased to 3.1% in August from 3.2% the previous month. At 2.1%, the euro zone’s inflation rate is just above the European Central Bank’s 2% target.
Asia-Pacific:
China’s RatingDog Manufacturing Index (formerly the Caixin PMI) signaled modest expansion at 50.5 in August, recovering from July’s contraction of 49.5. However, official government data showed China’s manufacturing PMI at 49.4 in August, marginally up from July’s 49.3, still indicating slight contraction.
South Korea’s consumer price index rose 1.7% year-on-year in August, down from 2.1% in July, marking its slowest inflation increase since November 2024 and slightly below expectations of a 2% rise.
In Australia, the current account deficit narrowed to 13.7 billion Australian dollars ($8.97 billion) in the April to June quarter, improving from a 14.7 billion AUD deficit the previous quarter. Australia’s GDP growth accelerated to 1.8% year-on-year in Q2, the fastest pace since September 2023, up from 1.3% in Q1. Household spending also showed resilience, rising 0.5% month-on-month in July.
Japan reported a positive shift in real wages, with inflation-adjusted wages rising 0.5% year-on-year in July 2025, the first increase in seven months, following a 0.3% gain in December 2024.
United States:
New applications for unemployment benefits increased more than expected last week, indicating a softening labor market. Initial claims for state unemployment benefits rose by 8,000 to a seasonally adjusted 237,000 for the week ending August 30, according to the US Labor Department. Additionally, hiring by private employers slowed in August, further signaling weakening employment conditions.