Quote on Market Commentary 1st September 2025 by Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd
Below the Quote on Market Commentary 1st September 2025 by Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd
Nifty50 rebounded after three sessions of losses, closing 198 points higher at 24,625, aided by stronger-than-expected GDP growth. India’s real GDP rose 7.8% YoY in 1QFY26 (highest in five quarters) vs. 6.5% in 1QFY25, boosting market sentiment. The broader market outperformed, with Nifty Midcap100 and Smallcap100 up 2.0% and 1.6% respectively. Amongst sectoral indices, Nifty Auto and Nifty Consumer Durables were the top gainers, adding over 2% each on optimism around GST reforms; while the IT index rose 1.6% tracking in-line US CPI data that strengthens the case for a September Fed rate cut. The consumption sector is expected to gain traction, supported by GST rationalization and upcoming festive demand. Within the domestic consumption theme, we are positive on value retailers, as they benefit from the rapid shift to organized retail channels and growing preference for one-stop family stores in Tier 2/3 cities. Further, hotel stocks would be in focus as demand trends remain firm across India in 2HFY26 —led by a healthy pipeline of MICE, weddings, cultural events and corporate travel. On the geo-political front, there is optimism over PM Modi’s meeting with his Chinese and Russian counterparts in the ongoing SCO summit in China. Overall, the domestic macro backdrop and demand environment remains constructive, though the overhang of 50% US tariffs and persistent FII selling could keep the market range bound.
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