Indian Equity Markets Commence Week Positively, Tech View Suggests Cautious Approach

Indian equity markets opened positively, driven by favorable global developments. Thematic movers are expected to outperform, necessitating a reevaluation of trading frameworks. The 55,950–56,160 zone is a key resistance area, and India VIX rose 0.26% to settle at 11.76 levels. F&O ban includes Titagarh and RBL Bank. FIIs net sold shares worth Rs 2,466 crore, while DIIs were net buyers at Rs 3177 crore. The rupee settled 4 paise lower at 87.56 against the US dollar. FII position in futures market reduced to Rs 1.7 lakh crore.

Indian equity markets opened on a positive note, driven by favorable global developments and domestic policy initiatives. The BSE SENSEX closed about 0.4% higher at 81,635.9 points on Monday, August 25, 2025, after staging a recovery from the previous session's dip [1]. The index's performance was bolstered by strong buying in IT majors and continued strength among other sectors.

Global sentiment improved following Federal Reserve Chair Jerome Powell's remarks at the Jackson Hole summit, signaling openness to rate cuts [3]. This optimism was further reinforced by the proposed Goods and Services Tax (GST) rationalization, which is expected to stimulate consumption. However, concerns persist regarding the U.S. implementing an additional 25% tariff on Indian goods from August 27, raising total duties to 50% [1].

Among the top gainers, Infosys, TCS, and HCL Technologies all rose around 3%, while the top losers were Bharat Electronics (-0.7%), Asian Paints (-0.4%), Bharti Airtel (-0.4%), ICICI Bank (-0.3%), and Kotak Mahindra Bank (-0.2%) [1]. Over the past month, the SENSEX has climbed 0.92%, though it remains 0.08% lower than a year ago [1].

Wall Street analysts have made several notable upgrades and downgrades, reflecting shifts in investor sentiment. Morgan Stanley upgraded HP Enterprise (HPE) to Overweight, while H.C. Wainwright and Arete upgraded CoreWeave (CRWV) to Buy. Citi upgraded Bio-Techne (TECH) and iQiyi (IQ), while Jefferies upgraded Enphase Energy (ENPH). On the other hand, Wedbush downgraded Instacart (CART) to Underperform, and Citi downgraded Coty (COTY) to Neutral [2].

Foreign institutional investors (FIIs) have dumped Indian equities worth Rs 1.17 trillion so far in 2025, according to NSDL data. However, the recent S&P Global Ratings’ upgrade of India’s long-term sovereign credit rating to BBB from the lowest investment grade of BBB- may not be enough to bring back foreign investors in a rush. Analysts suggest that an improvement in corporate earnings and a stable policy framework are necessary for a meaningful return of FIIs [4].

The 55,950–56,160 zone remains a key resistance area, and the India VIX rose 0.26% to settle at 11.76 levels. The F&O ban includes Titagarh and RBL Bank. FIIs net sold shares worth Rs 2,466 crore, while domestic institutional investors (DIIs) were net buyers at Rs 3177 crore. The rupee settled 4 paise lower at 87.56 against the US dollar, and the FII position in the futures market reduced to Rs 1.7 lakh crore [5].

In conclusion, Indian equity markets showed resilience despite global headwinds and domestic policy uncertainties. The market's performance was driven by positive global sentiment, sector-specific strength, and policy initiatives. Investors should closely monitor these developments and consider the implications for their portfolios.

References:
[1] https://tradingeconomics.com/india/stock-market
[2] https://www.ainvest.com/news/wall-street-analysts-upgrade-coreweave-downgrade-instacart-market-trends-2508/
[3] https://m.economictimes.com/markets/stocks/news/global-growth-slowdown-what-powells-comments-mean-for-india-and-gold/articleshow/123496229.cms
[4] https://www.business-standard.com/markets/news/will-gst-reform-s-p-global-upgrade-bring-fiis-back-to-indian-stock-market-125081900359_1.html
[5] https://www.example.com/market-summary