Skip to content Indian Stock Market Deep Dive – Sensex, Nifty 50 & Global Indices Performance (Weekly, Yearly & 10-Year)
Welcome to the weekly stock market roundup for the week ending 26 September 2025.
Indian equities endured their worst week since March, with both benchmark indices suffering in the face of external shocks, domestic caution ahead of the RBI policy meeting, and regulatory news. The Sensex ended the week at 80,426.46—down 733 points on Friday alone—while the Nifty 50 settled below 24,700, reflecting broad-based, multi-sectoral selling pressure.
Weekly Highlights
- BSE Sensex Weekly Performance: 80,426.46 (-2.66% WoW, -6.01% YoY)
- Nifty 50 Weekly Performance: 24,654.70 (-2.65% WoW, -5.82% YoY)
- Long-term trend: Both the Sensex and Nifty indices remain upward over the 10-year horizon
BSE Sensex Performance
As of Friday, 26 September 2025, the BSE Sensex closed at 82,626.23, marking a 2.66% loss compared to the previous Friday’s close of 82,626.23. On a year-on-year basis, the index was down by 6.01%, compared to 85,571.85 recorded on 27 September 2024.
Nifty 50 Performance
The Nifty 50 was down 2.65% WoW closing at 24,654.70. This was 5.82% lower from last year’s 26,178.95 as of Friday, 27 September 2024.
Key Market Drivers
Global Policy Shocks
The week was marked by two disruptive US trade measures directly targeting Indian industries. First, the US H-1B visa fee hike to $100,000 per applicant—announced last Friday (Sep 19), caused heavy selling in the IT sector. Later, President Trump’s Friday announcement of 100% tariffs on branded pharmaceuticals (effective October 1) dealt a further blow to pharma stocks, which had already been under pressure due to the visa news. These moves drove sectoral indices sharply lower, with IT, pharma, realty, consumer durables, and healthcare among the worst performers.
Foreign Investor Exodus
FIIs sold ₹19,570 crore in equities this week, extending their September net outflows to over ₹30,000 crore—a clear flight to safety as global risk appetite collapsed. Domestic institutions (DIIs) provided some cushion, buying ₹16,200 crore, but were unable to prevent a cascade of selling.
Regulatory Landscape
SEBI introduced enhanced surveillance measures on several small-cap and penny stocks to protect investor interests, moving them to the Trade-to-Trade (T2T) segment and setting a 2% daily price band for some names. This is part of a broader regulatory push for greater transparency amid high market volatility.
Macro Context
Despite the external pressure, domestic macroeconomic signals remained relatively positive. The RBI’s September Bulletin highlighted five-quarter high growth, resilient NBFCs, rising UPI adoption, and easing current account deficit—all signs of underlying economic strength. Headline inflation remains below target for the seventh consecutive month, but food inflation risks from excessive monsoon rains in key agricultural states are being closely watched.
Monetary Policy Outlook
All eyes are now on the RBI’s MPC meeting next week. With a 5.5% repo rate and benign CPI (2.07% in August), analysts are split—some predict a dovish pause amid global uncertainty, others expect a 25 bps cut to support growth. Indian banks have already reduced lending rates by 71 bps for new loans since February, but further easing is seen as possible if trade headwinds worsen.
Sectoral Performance
All sectoral indices closed in the red for the week, with IT and pharma bearing the brunt of US policy moves, while realty, consumer durables, healthcare, and capital goods also saw double-digit declines. Midcap and smallcap indices ended the week down 4–5%, reflecting the broad nature of the sell-off. The only pockets of resilience were seen in select auto, banking, and FMCG stocks, which managed to limit losses due to domestic demand optimism.
Regulatory & Corporate Updates
- SEBI continued its push for market integrity, expanding surveillance on volatile stocks to protect retail investors, and publishing new circulars on digital accessibility compliance.
- IPOs and Primary Market: September saw 11 new listings, but half of these are now trading below their issue price, reflecting cautious secondary market sentiment.
- FDI Inflows: Preliminary data suggest India’s FY26 FDI inflows could cross $100 billion, thanks to strong tech, manufacturing, and services investments, despite global trade tensions.
Macroeconomic Highlights
GDP
India’s Q1 FY26 GDP grew at a five-quarter high of 7.8%, fuelling optimism about domestic demand resilience.
Current Account
The current account deficit narrowed due to robust services exports and remittances, providing a buffer against external shocks.
GST Impact
The GST Council’s recent rate cuts on consumer goods are expected to support consumption and further moderate inflation in coming months.
Looking Ahead
The coming week will be dominated by:
- RBI MPC decision and guidance on rates and liquidity
- Monsoon progress and its impact on food inflation and rural demand
- Global cues, especially from US-China trade talks and the trajectory of the dollar
- Domestic corporate announcements as the earnings season approaches
