Stock market next week: The benchmark indices — BSE Sensex and Nifty 50 — recorded their sixth consecutive day of losses on Friday, September 26, as renewed Trump tariffs on pharmaceuticals coupled with sustained selling by foreign portfolio investors (FPIs) dampened market sentiment.

The Sensex ended the session at 80,426.46, slipping 733.22 points, or 0.90 per cent, while the Nifty 50 closed at 24,654.70, down 236.15 points, or 0.95 per cent.

For the week as a whole, the Sensex declined 2.66 per cent, and the Nifty dropped 2.65 per cent.

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“It was one of the toughest weeks of 2025 for Indian equities, with both Nifty and Sensex losing around 2.7%. The real pain, however, was in the broader markets, where the Nifty Midcap and Smallcap indices plunged nearly 5%. The week began with a shocker: a sharp hike in H-1B visa fees, which dampened sentiment in IT stocks. It ended with another blow—100% tariffs on branded and patented pharma imports, leaving pharma counters in the ICU. While the immediate impact of these developments on Indian IT and pharma companies may be limited, the outlook has turned uncertain,” said Santosh Meena, Head of Research at Swastika Investmart.

Top five triggers for the Indian stock marketRBI MPC meeting

The Reserve Bank of India’s Monetary Policy Committee (MPC) is set to begin its three-day meeting from September 29 to October 1, 2025. The meeting will conclude with a press briefing by RBI Governor Sanjay Malhotra, who will announce the panel’s decision on the repo rate along with other key policy measures. As per the RBI’s FY26 schedule, this will mark the fourth MPC meeting of the year.

“A 25-basis-point cut at the upcoming MPC meeting would be a timely and practical step to support credit growth for MSMEs and strengthen the lending ecosystem across banks, NBFCs and fintechs. Inflation has dropped sharply, with SBI research projecting CPI near 1.1 percent in October, and the new GST rules implemented on September 22 already reducing tax rates on many goods and services. Together, these factors give the RBI room to ease policy without risking price stability,” said Rohit Arora, CEO & Co-Founder, Biz2X & Biz2Credit.

India-US trade deal

India said on Friday that its officials had “constructive” discussions with U.S. counterparts during a visit to Washington this week, with both nations agreeing to carry on talks to finalize a mutually beneficial trade agreement in the near future.

A delegation headed by Commerce and Industry Minister Piyush Goyal visited the United States from September 22 to 24, where they held meetings with U.S. Trade Representative Jamieson Greer and ambassador-designate Sergio Gor.

FIIs trade pattern

Foreign institutional investors (FIIs) extended their selling streak in Indian equities for the fifth straight session on Friday (September 26), dumping shares worth ₹5,688 crore, as per provisional data from the National Stock Exchange (NSE).

“FPIs pulled out $21 billion from India during the last one year. This is the largest outflow from emerging markets during this period. This FPI outflow also has largely contributed depreciation in INR of 3.5% against the dollar. The elevated valuations in India vis a vis other markets and the tepid earnings growth are the principal reasons behind the FPI pull out.

If we look at the trend of FPI activity in India there are important phases. In the first three months of 2025 FPIs were sellers. In the next three months they turned buyers. In July, August and September so far, they have again turned sellers. Depreciation of INR also contributed to the selling mainly because many other emerging market currencies appreciated against the dollar this year,” said VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.

Indian Rupee

On Friday, the rupee recovered from its record low to end 4 paise stronger at 88.72 (provisional) against the U.S. dollar, supported by a softer greenback against major global currencies and a decline in international crude oil prices.

“Rupee traded flat near 88.71 as the dollar stayed rangebound, with yesterday’s stronger US GDP numbers keeping global sentiment cautious. FII selling pressure persisted while the ongoing delay in India–US trade deal talks added further uncertainty. Fresh tariff concerns on the pharma sector have also weighed on sentiment, increasing pressure on the rupee. The trading range for rupee is expected between 88.45-89.25,” said Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities.

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Gold prices advanced on Friday after U.S. inflation figures matched expectations, strengthening speculation that the Federal Reserve could proceed with more interest rate cuts later this year.

Spot gold climbed 0.8 per cent to $3,778.62 per ounce, after touching a record high of $3,790.82 earlier in the week. For the week, the metal gained around 2.5%. U.S. gold futures for December delivery closed 1% higher at $3,809.

“Gold prices traded firm at ₹1,14,000 with marginal gains of ₹130 as Comex Gold held steady, while the dollar stayed slightly positive and rupee remained flat near 88.71. US GDP data came in higher, leading to minor profit booking yesterday, but gold quickly recovered, maintaining its bullish structure. Overall trend remains positive with support at ₹1,12,500 and resistance at ₹1,15,000,” said Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities.

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