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Below the Quote on Weekly market outlook 05th September 2025 by Vinod Nair, Head of Research at Geojit Investments Limited

"Indian equities opened the week on a strong note but gradually lost steam, ending subdued as optimism around GST rationalisation faded and global trade tensions resurfaced. The IT sector faced the sharpest pressure amid concerns of reduced discretionary spending, driven by economic uncertainty, elevated rates, and geopolitical risks. In contrast, consumer-focused sectors such as Auto and FMCG advanced, supported by expectations that GST cuts will boost domestic consumption and aid demand recovery.

Global bond markets added to the cautionary mood, with German and French 30-year yields hitting decade highs on rising debt and fiscal imbalances in the Eurozone. Domestically, persistent foreign outflows weighed on the rupee, which slipped to a record low against the U.S. dollar. Meanwhile, safe-haven demand pushed gold prices to all-time highs.

Looking ahead, sentiment is likely to remain mixed. Domestic growth-linked sectors stand to benefit from GST relief, resilient consumption, and government spending, while uncertainty over global trade negotiations continues to restrain risk appetite. A multi-asset investment strategy is expected to gain traction in this environment. Market attention remains firmly on the upcoming U.S. jobs report, a key macro trigger that could shape expectations for a potential Fed rate cut. Also, investors will closely track key macro cues, including U.S. nonfarm payrolls, unemployment and inflation data, as well as the ECB’s rate decision, for direction in the week ahead."

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