Weekly markets wrap-up: Nifty crosses 25,100 mark, Sensex at 81,905; here’s what led to the rally

The Indian benchmark indices maintained an eight-day upward trend after snapping a two-week losing streak in September. In Friday’s session, the Nifty 50 closed at 25,114, rising 109 points to reclaim the 25,100 mark, while the Sensex advanced 356 points to 81,905. Over the eight sessions, the Sensex added 1,194 points, or 1.5%, while the Nifty gained 398.95 points, or 1.6%.

The rally has been supported by both domestic and global cues. On the domestic front, GST reforms—expected to push consumer demand—and a strong GDP performance for the quarter boosted investor sentiment.

On the global front, softer US labour market data and a cooler-than-expected consumer price index (CPI) helped offset stronger inflation readings, strengthening bets on a Federal Reserve interest rate cut. The resumption of US-India trade talks has further lifted confidence in the equity markets, with hopes of reduced tariffs on Indian exports.

Foreign Institutional Investors (FIIs) also turned marginal buyers with net inflows of ₹129.58 crore, while Domestic Institutional Investors (DIIs) continued their strong support, pumping in ₹1,556.02 crore as of 12 September.

At the end of Friday’s session, Bharat Electronics, Bajaj Finance, Bajaj Finserv, Hindalco Industries, and Eicher Motors led the gains on the NSE, rising between 1.73% and 3.71%. Infosys shares were also in focus after the IT giant announced a ₹18,000 crore share buyback. In the last five sessions, Infosys stock gained 5.26%. Other IT companies also tracked positive cues from US markets, pushing the Nifty IT index up by 0.30%.

In terms of sectoral performance, Nifty Auto continued its positive momentum, ending 0.46% higher than its previous close. The rally in Bajaj Finance and Bajaj Finserv boosted the Nifty Financial Services index. The major laggards were Nifty FMCG, which slipped 0.71%, and Nifty Media, down 0.39%.

Among the broader markets, all indices ended in the green, with the Nifty Midcap 50 rising 0.32% and the Nifty Smallcap 0.37%. The India VIX, or volatility index, cooled by 2.29% to 10.12.

In the coming week, investors will closely watch announcements from the US on potential interest rate cuts by the Federal Reserve, along with further developments in US-India trade talks.