Market Update — 25 September 2025

Market snapshot
• Intraday moves: Benchmarks traded lower for a fifth straight session; Nifty around 25,040 / Sensex ~81,630 as markets coped with persistent foreign outflows and U.S. visa/tariff noise.

• Flows: FPIs remain net sellers in September, continuing monthly outflows that have been a key drag on sentiment.

Sector-wise highlights

1) Information Technology
• IT names remained under pressure on the back of the U.S. $100k H-1B fee headline and earnings/margin uncertainty.

• Contract wins and AI demand provide some counter-balance.
• Large caps with diversified delivery models remain preferred.

2) Financials & Banks

• Domestic institutions continue to provide liquidity while FPIs trim positions.

• Select private banks and high-quality NBFCs remain in favour on balance-sheet strength and fee traction.

• Market breadth was mixed intraday.

3) Auto & Consumer
• Festive sales anecdotes (dealer billings, strong inquiries) support optimism in autos.

• Profit-taking seen in some OEMs, while consumer durables and branded FMCG showed resilience.

4) Infrastructure, Construction & Realty

• Order wins continue to support mid-cap infra names’ visibility.
• EPC contractors and developers remain active with new projects and MoUs.

5) Energy, Power & Renewables
• Energy names gained modestly as crude remained buoyant.
• Transmission and renewable contractors with visible orderbooks outperformed peers.

6) Pharma & Healthcare

• Regulatory approvals (EMA, MHRA, USFDA) driving stock-specific moves.

• Investors prefer names with clean inspection track records.

7) Metals, Mining & Commodities

• Tariff headlines and global demand trends continue to drive volatility.

• Direction hinges on China demand and global pricing outlook.

8) Shipping, Ports & Defence-Maritime

• Shipbuilding and maritime players in focus on fresh MoUs and project financing.

• Strategic defence and port projects underpin selective investor interest.

Key corporate actions & stocks in focus (25 Sept)

• Swiggy: Board approvals and Rapido stake sale plans kept the company in news; quick-commerce restructuring eyed.

• Dilip Buildcon / KEC / Torrent Power: Orderbook updates and contract wins drove stock-specific activity.

Regulatory & policy developments

• SEBI glitch rules: New framework for handling platform glitches under discussion.

o Narrower definitions, exemptions for smaller brokers, and clearer reporting norms proposed.

o Expected to improve platform resilience and investor protection.
Global cues

• U.S. policy headlines: Higher H-1B visa fee and tariff discussions created volatility, especially in IT and export-heavy sectors.

• Global equity tone: Rotation between tech/AI and cyclicals continues; commodity prices remain key drivers for metals and energy.

Market sentiment & investor insights
1. Sentiment: Cautious / risk-off intraday; FPIs remain sellers while DIIs offer support.

2. Tactical ideas (days–weeks):

o Trim momentum trades in speculative midcaps.

o Add selectively to high-quality infra, power/transmission, and large banks on dips.

o Hedge IT exposure with partial profit booking; favour large-cap IT with diversified non-US revenues.

3. Portfolio stance: Keep 5–10% cash buffer to exploit volatility; focus on balance-sheet strength and visible cashflows.

4. Macro watchlist: FPI flow reversal, clarity on U.S. trade/visa actions, RBI liquidity stance, and SEBI’s final glitch-rule framework.

Investor Insight

Markets remained muted on 25 Sept 2025 with continued FPI selling and U.S. policy headlines weighing; selective strength in energy, infra, and power contrasted with weakness in IT and cyclicals.