September 2, 2025

India's stock markets staged a lively comeback on Monday, shaking off three days of losses! The secret sauce? Strong GDP numbers that surprised many and pumped fresh energy into oversold shares. The NSE Nifty jumped by a neat 0.8% closing at 24,625, while the BSE Sensex gained 0.7%, finishing at 80,364. Both indexes had been down around 1.5% through August, so this rebound brought a fresh smile to investors’ faces. But don’t pop the champagne just yet! Analysts suggest that the market’s big brother — US tariffs — and a weakening rupee might still put a cap on this party. Earnings growth is expected to stay slow, which adds to the cautious vibe. “The benchmark Nifty fell a lot in the last three trading sessions, which led to a technical bounce in oversold markets,” explained Rohit Srivastava, the founder of indiacharts.com. Yet, he warned, “In the near term, there is a downward risk towards 23,800 levels since the earnings growth is expected to be muted, despite the GDP numbers.” Not all stocks were equal stars — the broader market actually outshined the bigwigs! The Nifty Mid-cap 150 jumped 1.7%, and the Small-cap 250 rose 1.4%, showing strong breadth. Out of 4,380 stocks traded on the BSE, 2,705 climbed higher, while 1,495 slipped. Last week, mid-caps and small-caps had dropped 1.5% and 1.9%, so Monday’s bounce was welcome. Sector-wise, the rally had a spicy flavor! Almost all sectors gained except media and pharma. Auto stocks zoomed up by 2.8% and consumer durables followed with a 2.1% rise. Metals and IT sectors gained 1.6% each, and oil & gas climbed 1.4%. But here’s the twist — the US tariff threat is making the rupee weak, a macroeconomic headache that could slow things down. Foreign investors kept selling hard, offloading shares worth ₹1,430 crore on Monday alone. In contrast, Indian investors showed faith and snapped up shares worth ₹4,345 crore. This selling spree by global investors has been intense: in August, they sold shares worth a whopping ₹41,908 crore. In short, India’s market story is sizzling but still a bit spicy with unknowns. Will the rupee stay shaky? Will US tariff threats calm down? Investors are watching closely, ready for the next big move!

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Tags: Indian stock market, Gdp data, Nifty, Sensex, Foreign investors, Rupee weakness,