Daily Finance Pulse India - 07 September 2025
Indian stock markets closed mixed Friday with Nifty at 24,741 and Sensex at 80,710. Markets closed for weekend. Auto sector surged 1.23% on GST cuts while IT declined 1.49% on tariff fears. Inflation at record low supports RBI's neutral stance.
1/10
GST Revolution: Auto Stocks Rally 1.23% on Tax Cuts to 18%
September 5, 2025 · Nifty Auto index jumped to 26,314 as GST Council approved reduction to 18% for small cars, bikes and buses effective September 22, 2025.
Impact: Tata Motors announces up to ₹1.55 lakh price cuts, boosting domestic auto demand and manufacturing sector growth.
2/10
IT Sector Exodus: FII Ownership Crashes from 10.3% to 7.4%
September 1, 2025 · Foreign investors sold $4.1 billion worth of IT shares amid AI disruption fears, with Nifty IT falling 1.49% as worst performing sector.
Impact: AI could cause 2-3% annual revenue drop for IT companies over next 3 years, threatening India's $200B+ export industry.
3/10
Inflation Victory: CPI Drops to 1.55%, Lowest Since 2019
July 2025 · Consumer price inflation fell below RBI's 2-6% target band for first time since 2019, driven by food deflation of -1.76%.
Impact: Ultra-low inflation provides RBI room for potential rate cuts, supporting equity valuations and economic growth.
4/10
RBI Pause Strategy: Repo Rate Held at 5.50% with Neutral Stance
August 2025 · Reserve Bank maintained status quo after delivering 100 basis points of cuts since February, including 50 bps reduction in June.
Impact: Monetary policy support continues while preserving ammunition for future economic challenges.
5/10
Market Resilience: Nifty Holds 24,741 Despite Global Headwinds
September 5, 2025 · Benchmark index gained 0.03% to 24,741 while Sensex ended flat at 80,710, with midcaps and smallcaps outperforming large-caps.
Impact: Strong domestic fundamentals and GST reforms support market stability amid global uncertainty.
6/10
Rupee Stability: USD/INR Holds 88.2 Despite Dollar Strength
September 5, 2025 · Indian currency traded at 88.19 per dollar, down just 0.01% despite strengthening greenback and global risk-off sentiment.
Impact: Stable rupee supports import-dependent sectors and maintains foreign investment appeal.
7/10
FMCG Retreat: Consumer Stocks Fall 1.45% on ITC Tobacco Tax Fears
September 5, 2025 · Fast-moving consumer goods sector declined as government considers new levy on tobacco products beyond current 40% GST.
Impact: Regulatory uncertainty weighs on consumption stocks despite strong domestic demand trends.
8/10
Metal Momentum: China Steel Capacity Cuts Drive Sector Gains
September 5, 2025 · Nifty Metal index rose up to 0.70% on optimism that China will reduce steel production capacity, supporting global commodity prices.
Impact: Global supply tightening benefits Indian steel producers and mining companies.
9/10
GDP Forecast: India's Growth Projected at 6.4% for FY25
June 2025 · Economic Survey 2025 maintained GDP growth projection at 6.4% with service sector contributing 55.3% to total gross value added.
Impact: Robust growth outlook supports long-term investment thesis despite near-term volatility.
10/10
Tata Motors Relief: GST Cuts Trigger Price Reductions Up to ₹1.55 Lakh
September 3, 2025 · India's largest automaker announced full GST benefit pass-through to customers, with Nexon seeing maximum ₹1.55 lakh reduction.
Impact: Lower vehicle prices expected to boost festive season sales and accelerate personal mobility adoption.