August 25, 2025

Indian stock markets wrapped up the last week on a high note for the second time in a row! The Nifty 50 and Sensex climbed nearly 1%, lifting investor spirits bright and early on the back of hopes for bigger GST rate changes. This buzz kept the momentum going through most days, although some profit-taking on Friday trimmed the gains. By week’s end, the Nifty was perched at 24,870.10 and the Sensex settled at 81,306.85.

What’s fueling this rally? Mainly expectations that the government might shake up GST rates, making trading smoother and cheaper. Adding fuel to this fire, S&P surprised everyone with an upgrade to India’s sovereign credit rating, boosting confidence further. However, some caution tugged investors back as global political jitters and the uncertainty about US interest rates ahead of Fed Chair Jerome Powell’s big Jackson Hole speech pushed some to book profits.

Talking technicals, the Nifty took a small breather on Friday but still held firm above its 50-day exponential moving average (50 EMA), signaling a short-term upward trend. Support stands strong at 24,800 — staying above could open doors to targets near 25,000 to 25,250.

Here’s what will keep traders glued to their screens this week:

• Powell's Dovish Tune: Markets will keenly watch the US Federal Reserve Chair Jerome Powell’s remarks at Jackson Hole. If he hints at a cautious or softer approach to rate hikes, expect Indian markets to jump with joy.

• Global Tensions: Political events worldwide, especially linked to the August 27 tariff deadline, are big trigger points that could shift market winds.

• Domestic Data Watch: Key Indian economic numbers like HSBC’s Manufacturing, Services, and Composite Purchasing Managers' Indexes (PMIs), along with Index of Industrial Production (IIP) and Gross Domestic Product (GDP) figures, will be closely scanned as signs of economic health.

• Technical Moves: Ajit Mishra, SVP of Research at Religare Broking, says, "Sustaining above this level could open the door for a move towards 25,250 initially, followed by 25,400. In case of a decline, it may fill the gap around retest the immediate support near 24,600, with a stronger base around 24,350."

• Monthly Expiry: The August 28 monthly derivatives expiry could bring extra excitement with volatility spikes expected.

• FII Selling Spree: Foreign Institutional Investors have been selling big — Rs 25,564 crore in equities just till August 23, making their total sell-off this year a whopping Rs 1,57,440 crore. This heavy selling pressure has been a hurdle for the markets.

• Rupee & Crude: The rupee initially gained on GST hopes but weakened as FII selling hit. Now, all eyes are on Powell’s speech to see which way the dollar and rupee might swing. Plus, crude oil price changes and global risk vibes remain key to market moves.

So, buckle up! With all these spicy ingredients — government policy hopes, global whispers, big data releases, and market math — India’s stock markets look set for an action-packed week.

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Tags: Nifty, Sensex, Jerome powell, Fiis, Gst reform, Indian stock market,