Indian equity markets began the new week on a positive note, buoyed by strong cues from Asian peers and renewed investor optimism around tax reforms and India’s upgraded sovereign rating.
On Monday’s opening, the BSE Sensex advanced 194.21 points (0.24%) to 81,501.06, while the Nifty 50 climbed 79.05 points (0.32%) to 24,949.15.
The rebound followed last Friday’s decline when investors turned cautious ahead of U.S. Federal Reserve Chair Jerome Powell’s address at the Jackson Hole symposium. The Nifty had slipped 0.85% to 24,870.10, and the Sensex dropped by the same margin to 81,306.85.
Despite the end-of-week dip, both indices posted weekly gains of around 1%, supported by strong performances in the automobile and consumer goods sectors. Optimism around upcoming GST amendments and S&P’s revision of India’s sovereign outlook further strengthened sentiment.
Analysts’ Market Outlook
Market experts believe the coming weeks could see extended gains, particularly as the government’s move to rationalize GST rates and S&P’s upgrade arrive at a crucial juncture to offset the impact of U.S. trade tariffs.
According to Dharmesh Shah, Vice President at ICICI Securities, the Nifty 50 ended last week with a 1% gain at 24,870, while midcap and small-cap indices outperformed, rising 2% each. Sector-wise, autos, FMCG, and realty stocks led the rally, while PSU banks lagged.
Shah noted that the formation of higher highs and higher lows, combined with an improvement in market breadth, indicates a resumption of the uptrend. He expects the Nifty to move towards 25,400 in September.
“Strong support for the index is placed in the 24,700–24,500 zone. Investors should use volatility to accumulate quality stocks with robust earnings potential, especially in sectors that benefit from GST reforms and the festive demand cycle,” Shah said.
Key Triggers to Watch This Week
- U.S. and India’s upcoming GDP data
- Developments around trade tariffs (27th August deadline)
- Monthly F&O expiry
- Commentary from U.S. Fed Chair Jerome Powell at Jackson Hole
- Progress in bilateral trade negotiations
Market breadth indicators also point to strengthening sentiment. The percentage of Nifty 500 stocks trading above their 50-day simple moving average has jumped to 40%, up from 25% two weeks ago, historically a signal for potential gains.
Stock Recommendation – Chalet Hotels
As part of his weekly picks, Dharmesh Shah recommends buying Chalet Hotels Ltd. shares in the price range of ₹990–1,015, with a target price of ₹1,115 and a stop loss at ₹899.
The Bottom Line
With tax reforms, festive demand, and rating upgrades providing tailwinds, analysts expect the Indian market to maintain a positive trajectory in September. However, global uncertainties—particularly U.S. tariffs and Fed policy signals—could trigger short-term volatility.
Disclaimer: The recommendations mentioned are those of market analysts. Investors are advised to consult certified financial advisors before making investment decisions.
