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Below the Perspective on Markets 01st Sept 2025 by Mr. Vikram Kasat, Head - Advisory, PL Capital

" Smallcap 100 Index breaks support, INR under pressure, Market Breadth remains weak, Strong PMI and GDP Data

 Several factors are at play: new 50% tariffs on Indian goods, high relative equity valuations versus modest 10% earnings growth, persistent FII selling, potential GST cuts that could threaten fiscal consolidation, and a global slowdown.

 Despite this asset weakness, India’s economic data tells a different story. The Manufacturing PMI hit a three-year high, signalling strong industrial activity, while GDP growth surprised to the upside at 7.8%

 This disconnect likely reflects the market pricing in events six months ahead, as the impact of US tariffs begins to show up in GDP growth and the broader economy.

 Nifty 24426.85

 Nifty continues to drift lower, and it has closed around the lowest point of the week. Bears are in complete control In the short term, the oversold readings in the technical indicators can lead to a bounce, but any pullback towards the 20 HMA and 40 HEMA at 24608 and 24706, respectively, will attract selling pressure

 Low of 24337 will be the immediate support level.

 High Conviction Picks: ITC, AdaniPorts & MaxHealth.”

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