India: Daily Stock Market Performance Insight - September 1, 2025

Today, the Indian market showed a mixed picture. The Sensex climbed 554.84 points, a gain of 0.70%, closing at 80,364.49, while the Nifty50 rose 198.20 points, or 0.81%, to 24,625.05. However, this positive momentum was tempered by other economic factors.

Strong Growth vs. Currency Concerns: India’s economy is showing strength, with Q1 GDP growth hitting 7.8%, exceeding the Reserve Bank of India’s 6.5% forecast. The HSBC Manufacturing PMI also improved to 59.3 in August. This good news fueled a rally, especially in sectors like Auto (up 2.8%) and Consumer Durables (up 2.08%). However, the Indian Rupee fell to a record low of 88.33 per US dollar due to a 25% increase in US tariffs, bringing the total duty burden to almost 50%. This tariff hike has already triggered $2.4 billion in outflows from Indian equities by Foreign Portfolio Investors (FPIs) in just the last three sessions.

Banking & Market Structure Shifts: Public sector banks like Punjab National Bank and Bank of India are reducing their lending rates by up to 15 basis points, which could lower loan EMIs for borrowers. Meanwhile, the NSE made a significant change, moving the expiry day for all Futures & Options (F&O) contracts to Tuesday after 25 years of Thursday expiries. They also increased the freeze limit for Bank Nifty derivatives to 900 contracts. These changes are designed to improve trading efficiency but could increase volatility on Mondays and Tuesdays.

Corporate Governance & Stock Specifics: Several companies faced scrutiny. MTNL and Coal India were both fined around ₹6.73 lakh and ₹10.72 lakh respectively by the NSE and BSE for non-compliance with SEBI corporate governance rules, specifically regarding board composition. On a brighter note, Sellwin Traders hit a 52-week high, surging over 312% from its April lows, while Premier Energies saw a nearly 3% price increase following the expiry of a lock-in period for a large block of shares (41% of equity, valued at ₹18,347 crore). Reliance Industries, however, saw its stock slip 5% in the last four days after announcing a delay in the Jio IPO.

Investor Activity: Despite the overall positive market movement, FIIs remain bearish, holding net short positions worth ₹7,559 crore in index options. However, Domestic Institutional Investors (DIIs) continue their 25-month buying streak, providing some support to the market.