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Below the Quote on Market Wrap 02nd September 2025 by Mr. Ajit Mishra - SVP, Research, Religare Broking Ltd 

"Markets started the session on a firm note, supported by positive domestic cues and optimism around the GST Council meet. After an initial uptick, the Nifty inched gradually higher in the first half and tested the hurdle of the 20 DEMA near 24,735. However, selling pressure in banking and select heavyweights during the latter half derailed the recovery, dragging the index into the red on the weekly expiry day. Eventually, it settled lower at 24,579.60, down 0.18%. Weakness in financials overshadowed resilience in energy and FMCG counters, while mid- and small-cap indices ended with modest gains in the range of 0.2%–0.5%.

The move in the index was largely on expected lines, given the potential for consolidation amid mixed cues. However, the underperformance of the banking index may continue to keep participants cautious. We reiterate our preference for focusing on sectors and themes displaying relative strength, such as FMCG, auto, and consumer durables. Additionally, we are observing early signs of reversal in select PSU themes like defense and railways, following the sharp correction from record highs. Participants should align their positions accordingly, with an emphasis on stock selection."

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