Weekly Market Recap: Nifty Gains, GST Reforms & Sector Winners

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Markets weathered another week of volatility but recovered most of the previous week’s losses as pockets of bullish momentum surfaced through the week.

Here's our take on this week gone by, some stories you might have missed out on, and our thoughts on what to do going ahead, in your weekly stock market report.

Back in Green

  • Investors buying sentiment showed signs of revival last week, with the Nifty rising 1.29% from the previous week’s levels.
  • Among the broader indices, the BSE Largecap, Midcap and Smallcap indices gained 1.4%, 1.8% and 2.5%, respectively.
  • The uptrend was accompanied by a sharp decline in the India VIX, which fell 8%, reflecting easing concerns and hinting at cautious optimism for near-term market movement.

The Big Stories

  • The spotlight was on the government’s GST Council meeting earlier in the week, where discussions centred around revising GST rates as part of a major overhaul of the tax code expected later this year. Read more here: GST 2.0 Reform 2025: Top Stocks & Sectors Benefiting from Tax Cuts
  • Meanwhile, India’s GDP for Q1 FY25-26 recorded a strong 7.8% growth in real terms and 8.8% in nominal terms, even as concerns rose over the US imposing 50% tariff rates.
  • Adding to the positive sentiment, the manufacturing PMI climbed to a 17-year high, services PMI touched a 15-year high, while consistent DII inflows and supportive global markets—driven by expectations of a Fed rate cut—further strengthened momentum.

The Winners

  • Mahindra & Mahindra emerged as the week’s top gainer, rallying 11.3% after the government’s GST changes brought cheer to the auto sector.
  • Tata Steel climbed 8.5% during the week, as investors grew optimistic that China’s production curbs along with government-backed tariff protections would support the broader steel sector.

The Losers

  • HCL Tech, along with other IT-sector heavyweights, was the week’s biggest loser, shedding 2.5% as weak global demand cues—particularly from the US—pressured the broader IT sector.
  • Cipla fell 2.3% despite announcing the launch of a new non-antibiotic drug for UTI treatment, a first-of-its-kind introduction in India.

Meanwhile…

  • US jobs data for August came in well below expectations, with only 22,000 jobs added during the month. The weaker print has strengthened hopes of an imminent Fed rate cut.
  • In a major development, a federal court struck down the tariffs imposed under the Trump administration, ruling them a constitutional overreach. However, the tariffs remain in effect while the decision is under appeal.

Market Brief

Sector Highlights

Stock Highlights

FII & DII Data

Market Outlook

Sectors to Watch

Our Take

  • Going forward, market sentiment is likely to stay mixed, with GST relief, resilient consumption and government spending supporting domestic sectors, while uncertainty over global trade talks keeps risk appetite in check.
  • We expect the Nifty to consolidate within the 24,350–25,150 zone in the coming week, with sector rotation and stock-specific action driving opportunities rather than a broad index move.

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