The Indian equity market showed positive momentum on 1st September 2025, as benchmark indices opened and traded in the higher direction in response to a mix of domestic and international triggers. The BSE Sensex rose by 554.84 points, closing at 80,364.49, and the Nifty 50 index increased by 198.20 points to close at 24,625.05, showing overall positive investor sentiment as the fresh month started.
Key Sectoral Performances and Index Gains
The Sensex increased around 0.70%, while the Nifty added over 0.80%, driven by healthy performances in technology, energy, and automobile sectors. The major gainers were Infosys, Mahindra & Mahindra, Power Grid, Asian Paints, and Adani Ports. Mid-cap and small-cap stocks too appreciated around 1%, reflecting widespread buying interest across the board.
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Economic Growth and PMI Data Boost Confidence
Local economic statistics were the key to boosting the market. India’s Q1 GDP growth rate turned in a positive surprise at 7.8%, beating the estimated level of 6.6%. Moreover, manufacturing growth reached its highest pace in 17 years, as indicated by the final Purchasing Managers’ Index (PMI). Such figures strengthened investor optimism on the robustness of the Indian economy during times of global uncertainty.
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Impact of Global Trade Developments
Internationally, an American court ruling held that the majority of the tariffs imposed by former President Trump were illegal but did not invalidate them until mid-October. This relieved some temporary trade tensions and helped lift Indian markets’ mood. International markets, however, gave mixed signals, with flat U.S. markets and mixed performances among Asian markets, cautioning traders.
Foreign and Domestic Investment Flows
Foreign institutional investors (FIIs) seem to continue selling pressure, which proves to be challenging for the market. However, strong inflows from domestic institutional investors (DIIs) softened the impact, supporting the equities. An increase in safe-haven assets such as gold and silver showed some risk aversion in view of prevailing global economic uncertainties.
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Outlook for the Week Ahead
Today’s session reflected a cautiously optimistic market stance, balancing strong domestic growth data and improved trade conditions against geopolitical risks. Experts advise investors to maintain a balanced and prudent strategy as upcoming macroeconomic developments are poised to influence the market trajectory further.
