The Indian stock markets recorded one of their strongest weeks in recent months as the Nifty 50 closed above 25,100 and the Sensex climbed to 81,904.70 on September 12, 2025. Optimism was fueled by corporate announcements, regulatory reforms, and global monetary policy signals.
Major Market Drivers This Week
Infosys Buyback Boosts IT Sentiment
The highlight of the week was Infosys announcing its biggest-ever share buyback worth ₹18,000 crore at a 19% premium. The move lifted investor confidence and triggered a rally across the IT sector, helping push the broader indices higher.
SEBI Reforms Add Market Depth
The Securities and Exchange Board of India (SEBI) approved a set of capital market reforms designed to ease foreign investor access, simplify IPO requirements, and increase transparency. Analysts believe these measures will attract new inflows into Indian equities.
Global Cues: Fed Rate Cut Expectations
Expectations of interest rate cuts by the U.S. Federal Reserve also buoyed investor sentiment. Softer U.S. inflation data suggested the Fed may ease rates in 2025, creating favorable conditions for emerging markets like India.
Ups and Downs in the Market
- Winners: IT (Infosys, TCS), Auto (Tata Motors, Mahindra), Metals (JSW Steel, Tata Steel), and Defence (GRSE, Apollo Micro Systems).
- Lagging sectors: FMCG stocks such as Hindustan Unilever (HUL) underperformed as consumption sentiment remained subdued.
- Regulatory pressure: SEBI’s crackdown on speculative options trading wiped out nearly ₹1.75 lakh crore in market capitalization of exchanges like NSE and BSE.
Technical Trends
The Nifty traded in a volatile range between 24,700 and 25,100 during the week. Strong support was seen around 24,750, while resistance near 25,200 is likely to be tested in the coming sessions. Analysts expect a "buy on dips" strategy to remain dominant given the structural optimism.
Outlook for Next Week
Investors will be watching for further updates on U.S. monetary policy, FII flows, and domestic cues such as GST collections and inflation numbers. With SEBI reforms boosting confidence and Infosys setting a precedent in corporate actions, the coming weeks could see sustained momentum if global risks remain contained.
