Introduction: Context, Momentum & Market Pulse
As markets geared up for the final week of September 2025, all eyes were on global policy cues, commodity swings, currency movements, and domestic triggers like corporate results, credit growth, and institutional flows. This backdrop set the tone for tactical plays, sector rotation, and cautious optimism.
At the start of the week, according to Moneycontrol on 22 September, Indian benchmarks slipped: Sensex fell ~466 points (–0.56 %), Nifty down ~124.7 points (–0.49 %) to 25,202.35. The weakness was largely attributed to pressure on IT names following H-1B visa concerns, while power, metals, and oil & gas offered tentative support.
We also reference the prior week’s momentum Weekly Market Wrap 15–19 Sept 2025. That earlier wrap sets the context for sentiment shifts and rotation that influenced 22–26 Sept.
This week’s story: emerging confidence amid global uncertainty. External headwinds (dollar strength, rate uncertainty, commodity swings) persisted, but domestic flows and selective sector strength helped benchmarks hold up—and sometimes advance.
Global Market Cues & External Drivers
U.S. Fed & Rate Bias: Hawkish commentary continued, keeping risk assets under pressure.
Dollar Strength & EM Pressure: Rupee weakened; foreign capital flows sensitive.
Crude & Commodities: Brent crude firm; metals gained on global industrial demand.
China Macro Signals: Mixed growth data affected commodity-linked sectors.
Geopolitical & Trade Tensions: India–U.S. talks, tariffs, and flashpoints influenced volatility.
Global Indices & Risk Sentiment: S&P, Nasdaq, EuroStoxx, Nikkei swings impacted domestic mid- and small-caps.
India absorbed external waves while drawing on internal strengths: corporate results, RBI signals, credit upticks, and liquidity flows.
Day-Wise Market Recap: 22–26 Sept 2025
Monday, 22 September – Weak Start Amid IT Fallout
Sensex: –466 pts (82,159.97); Nifty: –124.7 pts (25,202.35)
IT index: –2.7 % (TCS, Infosys, Tech Mahindra, Wipro)
Pharma: –1.2 %, Power +1.6 %, Oil & Gas +0.4 %
Mid/Small caps: –0.7 %
Rupee: ₹88.31/USD, down 21 paise
Nifty Bank: –0.31 %, Kotak below 50-day MA
Takeaway: Defensive sectors cushioned broader weakness.
Tuesday, 23 September – Recovery Picks Up
Financials & energy led; rotation from defensives to cyclicals
FII flows constructive; midcaps participated
Leading stocks: Large financials, energy majors
Wednesday, 24 September – Volatility & Mixed Sentiment
Profit-taking in consumer/auto; metals bright spot
IT/Pharma under pressure; flows fluctuated
Intraday swings driven by inflation commentary and commodities
Thursday, 25 September – Broad-Based Advance
Rally across energy, metals, financials, infra, and realty
Midcaps/smallcaps outperformed large caps
Technical breakout in Nifty; institutional inflows boosted gains
Friday, 26 September – Consolidation with Up Bias
Defensive names stabilized; cyclicals held strength
Earnings optimism supported sentiment
Indices ended week positive; minor profit booking observed
Sectoral & Theme Review
| Sector | Trend in Week | Key Drivers / Highlights | Notable Stocks / Themes |
|---|---|---|---|
| Financials / Banking | Strong rally | Credit growth outlook, PSU bank interest | Large banks, NBFCs |
| Metals / Mining | Outperformance | Global demand, China recovery | Metal bellwethers, mining plays |
| Energy / Oil & Gas | Uptrend | Crude firmness, improved demand | Energy majors, OMCs |
| Infrastructure / Realty | Recovery | Policy optimism, infra push | Builders, contractors |
| IT / Pharma | Stress | Global headwinds, regulatory risk | Large/mid IT, pharma |
| Consumer / Auto / FMCG | Mixed | Sentiment-driven, profit booking | Auto OEMs, components |
Rotation & Key Observations:
Money rotated from overextended defensives (IT, Pharma) to cyclicals (metals, energy, infra).
Quality midcaps attracted capital; commodity-linked sectors led gains.
Banks, infra, and energy were pulse sectors; IT & Pharma lagged.
What to Watch Next
Macro & Inflation Data: CPI, WPI, IIP, industrial output.
RBI & Global Central Banks: Minutes, commentary, Fed/ECB/BOJ cues.
Earnings Season: Q2 results driving sector rotation; surprises can trigger sharp moves.
FII / DII Flows & Currency: Rupee volatility vs. dollar, foreign flows.
Global Tail Events: Commodity shocks, geopolitical flare-ups.
Technical Zones: Nifty/Sensex support & resistance, breadth indicators.
Mid/Small Cap Health: Breadth expansion confirms bullish undertone.
Conclusion: Navigating the Next Leg
22–26 September 2025 highlighted resilience in Indian markets. Despite external pressures—rate hawkishness, dollar strength, commodity swings—domestic liquidity, selective buying, and sector rotations drove pockets of fresh gains.
Market leadership is dynamic: cyclical sectors like metals, energy, banks, and infra took charge, while IT and Pharma faced headwinds. Traders and investors should remain adaptive, focusing on quality names, tactical rotation, and disciplined risk management.
FAQs
Use global cues (Fed commentary, commodity swings, geopolitical risks) as context, but focus on domestic flows, sector rotations, corporate results, and policy developments—these directly drive Indian markets.
Sector rotation signals where capital is moving—from overextended sectors to growth or recovery areas—helping traders identify tactical opportunities.
Foreign and domestic institutional flows are major liquidity drivers. Positive net inflows often support equity indices, while outflows can trigger pressure on specific sectors.