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Below the Weekly Market Outlook 26th September 2025 from Vinod Nair, Head of Research at Geojit Investments Limited 

"Indian equities closed the week on a subdued note, with broad-based sectoral declines. The IT index came under early pressure amid concerns over rising H-1B visa costs, compounded by Accenture’s subdued outlook. Sentiment weakened further as fresh U.S. tariffs on pharmaceutical products led to a sharp sell-off in pharma counters. Mid- and small-cap stocks corrected more sharply than large caps, reflecting stress from their stretched valuations.

 The rupee continued to weaken, weighed down by ongoing FII outflows and heightened geopolitical risks stemming from U.S. trade actions. In contrast, gold sustained its appeal as a safe-haven asset, supported by global trade tensions, a depreciating rupee, steady central bank purchases, and uncertainty over the Fed’s policy path. Silver too attracted interest, benefiting from firm industrial demand alongside supply-side constraints.

 Looking ahead, investor attention will centre on upcoming U.S. economic indicators, particularly inflation and employment data. On the domestic front, the RBI’s policy decision and industrial production figures will play a pivotal role in guiding sentiment. Sectoral fundamentals across banking, FMCG, and automobiles remain constructive, supported by domestic policy tailwinds and macroeconomic stability. However, the sustainability of current market valuations hinges on a visible recovery in corporate earnings and resolution of India-US trade frictions."

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