Indian benchmark indices ended with weekly gains of 1.5% led by auto stocks and well supported by banks and pharma stocks. A host of important domestic and global events lined-up during the week are likely to impact stock markets when they resume trading on Monday.
On Friday, Nifty closed 108.50 points or 0.43% higher to end the day at 25,114.
Commenting on the current trends in Nifty, Rupak De, Senior Technical Analyst at LKP Securities said that the index has managed to stay in the green as PUT writers provided support around the 25,000 mark. In his view, the index appears to be consolidating its recent gains and gradually forming a base. “As long as it sustains above 24,850, the undertone remains constructive. A decisive move beyond 25,150 may set the stage for a rally towards 25,500 in the near term,” De said.
Factors that are likely to impact movement when markets reopen this week:
1. FED MeetingStreet will be monitoring the developments on the policy front. The US Federal Reserve’s two-day monetary policy meeting begins this week with the outcome coming on Wednesday, September 17. There are expectations of a 25 bps cut as the labour market weakness outweighs inflation concerns. 
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2. US marketsWall Street ended mixed on Friday with Nasdaq hitting a record high close lifted by Microsoft. The Dow 30 ended the session at 45,834.20, declining 273.78 points or 0.59% while the S&P 500 settled at 6,584.29, down by 3.18 points or 0.05%. The Nasdaq Composite was the biggest loser, closing at 22,141.10, falling by 98.03 points 0.45%.
Domestic and global markets are likely to take their cues from US markets.
3. Corporate ActionOver 230 companies have corporate actions lined-up this week with record dates for dividends, stock split and bonus shares over the five-day trading week. Shares of Doms Industries, Glenmark Pharmaceuticals, Indraprastha Gas, SJVN, Zydus Wellness, Balu Forge Industries, Bharat Dynamics will be among the companies which will have record dates for the dividends this week.
Godfrey Phillips India‘s 2:1 bonus issue will also have a record date this week and likewise for 1:10 stock split Kesar Enterprises, 1:5 stock split of Tourism Finance Corporation of India, 1:2 stock split of GHV Infra Projects and 1:5 stock split of Zydus Wellness.
4. IPO watchIndia’s primary market will be abuzz with action as 5 IPOs prepare to hit the Streets this week. They are both mainboard and SME. Among the mainboard issues, Euro Pratik Sales will be the biggest offering for investors with issue size of Rs 451 crore. The issue will open on September 16 and close on September 18 and the price band has been fixed at Rs 235–247 per share. Another mainboard issue will be of VMS TMT between September 17–19.
In the SME segment, public issues of Vijay Kedia-backed TechD Cybersecurity and JD Cables will open for bidding.
5. FII / DII ActionMarket actions will rely on how foreign institutional investors (FIIs) behave. On Friday, FIIs inflows stood at Rs 129.6 while the domestic institutional investors were net buyers at Rs 1,556 crore.
In 2025 so far, FIIs have sold shares worth Rs 1,41,417 crore with August sell-off at Rs 10,782 crore.
6. Technical FactorsNifty’s eight-sessions winning streak is supported by a mix of triggers, says Ajit Mishra, Senior Vice President – Research at Religare Broking. “Nifty is now approaching its previous swing high of 25,150, which may lead to some consolidation before the index advances towards the 25,250–25,500 zone. A decisive breakout above 54,900 in the banking index could act as a major catalyst for fresh momentum; otherwise, the move may remain gradual,” Mishra said.
His advice to traders is to focus on the sustained strength in metals, autos, and pharma, while remaining selective in other sectors and themes such as defense and railways.
Also Read: Weekly wrap: 8 BSE 500 stocks deliver double-digit returns. Infosys joins top Sensex gainers
7. Rupee Vs DollarThe Indian rupee recovered from all-time lows and settled for the day higher by 9 paise at 88.26 against the US dollar on Friday, on weakness in the US dollar index and positive domestic markets. On Thursday, the rupee had slumped 24 paise and closed for the day at an all-time low of 88.35 against the US dollar. It had also touched the lowest-ever intraday level of 88.49 against the greenback.
“We expect the rupee to trade with a slight positive bias on overall weakness in the US dollar and rise in risk appetite in global markets on rising odds of a rate cut by Fed in its upcoming FOMC meeting next week,” said Anuj Choudhary, Research Analyst, Currency and commodities, Mirae Asset ShareKhan.
“Markets now expect a 75 bps rate cut in 2025. However, FII outflows and uncertainty over trade tariff issues between India and the US may cap sharp upside,” Choudhary said, adding that traders may take cues from University of Michigan consumer sentiment data from the US. The USD-INR spot price is expected to trade in a range of 88 to 88.50, he said.
8. Crude OilOil prices rose on Friday after a Ukrainian drone attack on a Russian port suspended loadings, negating some pressure from oversupply concerns.
The US WTI oil contracts ended at $62.60, down by $0.23 or 0.37% while Brent oil futures were hovering near $66.99, higher by $0.51 or 0.77%.
Crude oil prices significantly influence inflation as higher fuel costs raise transportation and input prices, leading to broad-based price pressures.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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