Weekly Market Wrap – Broader Weakness Punctuated by IT and Pharma

29 Sep 2025 , 02:41 PM

Indian markets had a sharp sell off last week, NIFTY fell 2.7%, breaking 3 consecutive weeks of gains. The selling was broadbased as a multitude of factors impacted the stocks. Weak global cues and continued US tariff worries were among the key reasons. Heavyweights such as Infosys, TCS, HDFC Bank, ICICI Bank, and Reliance Industries performed poorly. On the other hand, select stocks like Larsen & Toubro, Axis Bank, and Maruti Suzuki provided limited support. The selloff was sharper across midcaps. Nifty Midcap Select index was down 5.11% led by steep losses across IT mid-caps and others.

NIFTY IT plunged ~8% in one of its worst weekly falls. H1-B visa concerns dominated the headlines. Pharma index also corrected sharply on renewed worries on tariffs on Pharma exports. For the week, NIFTY Pharma index was down 5.2%. Relatively, NIFTY BANK outperformed but was still down for the week.

NIFTY 50 – Sharp Weekly Decline Amid Broad Market Weakness

Weekly Performance: -2.7%

date	open	high	low	close
2025-09-26	24818.6	24868.6	24629.4	24654.7
2025-09-25	25034.5	25092.7	24878.3	24890.8
2025-09-24	25108.8	25149.8	25027.4	25056.9
2025-09-23	25209.0	25261.9	25084.7	25169.5
2025-09-22	25238.1	25331.7	25151.1	25202.3
2025-09-19	25410.2	25431.4	25286.3	25327.1

Source: NSE

Figure: Recent performance

The NIFTY 50 dropped 2.65% in the week ended 26 September 2025. It fell on all days of the week in one of the worst selling spells in recent times. US exporters IT and Pharma faced the brunt of the selling pressure. However, the selling was widespread as all the major sectoral indices ended the week in red. On the flip side there was buying interest in select stocks. Larsen & Toubro, Axis Bank, Maruti Suzuki, Eicher Motors, and JSW Steel emerged as the top gainers, though their modest positive contributions weren’t enough to counter the broader weakness.

NIFTY MIDCAP SELECT – Sharp weekly drop ends recent rally

Weekly Performance: -5.1%

date	open	high	low	close
2025-09-26	12792.1	12817.7	12545.7	12563.3
2025-09-25	12922.0	12968.4	12802.0	12822.3
2025-09-24	13058.2	13069.7	12890.9	12905.3
2025-09-23	13105.0	13124.3	13007.2	13074.7
2025-09-22	13179.5	13226.8	13062.0	13094.9
2025-09-19	13237.9	13266.0	13208.2	13240.5

Source: NSE

Figure: Recent performance

The NIFTY Midcap Select fell 5.11% in the week ending 26 September 2025, ending a three-week rally. IT stocks witnessed heavy corrections. Coforge (-14.3%) and Mphasis (-11.74%) led the decline. Only Hindustan Petroleum (+2.23%) and Ashok Leyland (+0.74%) gained slightly, but their impact was limited. Market breadth was weak, with just 2 advancers against 23 decliners. The slide reflected heightened profit booking and selling in mid-caps after 3 weeks of strong gains.

NIFTY IT – Sharp Reversal as IT Giants Plunge

Weekly Performance: -7.9%

date	open	high	low	close
2025-09-26	34399.2	34477.3	33636.6	33702.0
2025-09-25	34914.0	35092.4	34460.3	34548.3
2025-09-24	35104.1	35193.3	34857.7	34994.2
2025-09-23	35477.6	35642.7	35177.4	35249.1
2025-09-22	35437.9	35781.6	35145.1	35500.1
2025-09-19	36765.5	36821.2	36369.9	36578.2

Source: NSE

Figure: Recent performance

The NIFTY IT index slumped 7.86% in the week ended 26 September 2025, wiping out gains from the past two weeks and extending its broader downtrend. The fall was led by heavyweights TCS (-8.52%) and Infosys (-5.93%), which together accounted for most of the index drag. Other majors like Tech Mahindra, Wipro, HCL Tech, LTIM, Mphasis, and OFSS also fell sharply, with no advances among the 10 constituents, underscoring the sector-wide sell-off.

The sharp decline was triggered by U.S. policy changes imposing steep fees on H1-B visas, a direct hit to Indian IT firms that rely heavily on overseas talent deployment. This regulatory shock fueled broad selling across the sector.

NIFTY BANK – Index Slides Amid Broad-Based Decline

Weekly Performance: -1.9%

date	open	high	low	close
2025-09-26	54797.9	54897.0	54310.9	54389.4
2025-09-25	55061.6	55276.6	54903.3	54976.2
2025-09-24	55387.1	55511.1	55040.4	55121.5
2025-09-23	55248.7	55662.0	55159.0	55509.8
2025-09-22	55429.3	55666.4	55215.6	55284.8
2025-09-19	55647.9	55688.8	55355.3	55458.9

Source: NSE

Figure: Recent performance

The NIFTY Bank index fell 1.93% in the week ended 26 September 2025, snapping a four-week winning streak. Heavyweights ICICI Bank (-3.04%) and HDFC Bank (-2.26%) led the decline, together shaving off more than 1.4 percentage points from the index. Losses in IndusInd Bank, IDFC First Bank, and Kotak Mahindra Bank added further drag. On the other hand, Axis Bank (+1.59%) and AU Small Finance Bank (+3.41%) provided some support, but their gains weren’t enough to offset the weakness. Market breadth was poor, with only 3 advancers against 9 decliners.

While the index was down, it managed to relatively outperform the broader NIFTY. This is the second week of relative outperformance and partially makes up for the recent extended underperformance.

NIFTY ENERGY – Weekly Pullback Amid Broad Declines

Weekly Performance: -2.6%

date	open	high	low	close
2025-09-26	35272.1	35285.6	34775.1	34830.0
2025-09-25	35528.1	35736.1	35217.2	35255.6
2025-09-24	35822.6	35844.4	35482.4	35506.7
2025-09-23	36107.6	36142.4	35761.7	35826.2
2025-09-22	35804.3	36182.1	35789.1	35992.6
2025-09-19	35596.1	35814.6	35583.1	35745.8

Source: NSE

Figure: Recent performance

The NIFTY Energy index slipped 2.56% this week (26 Sep 2025), ending a 3-week winning streak. Losses in Suzlon (-8.5%), GAIL (-5.3%), and CG Power (-5.1%) dragged the index. Gains in NLC India (+7.4%), Adani Power (+3.1%), and HPCL (+2.2%) limited the downside. Overall, weak breadth (8 advancers vs 32 decliners) kept sentiment bearish. The decline was led by profit-booking and global crude-related pressures, tempering sector momentum.

NIFTY FMCG – Sharp Weekly Decline Amid Broad‑Based Weakness

Weekly Performance: -2.5%

date	open	high	low	close
2025-09-26	55031.6	55199.6	54776.9	54847.6
2025-09-25	55424.8	55656.0	55031.6	55108.0
2025-09-24	55290.1	55703.9	55110.2	55378.9
2025-09-23	56025.4	56127.4	55242.8	55281.6
2025-09-22	56357.0	56425.5	55859.5	56006.8
2025-09-19	56594.6	56640.7	56191.8	56273.1

Source: NSE

Figure: Recent performance

The NIFTY FMCG index fell 2.53% this week (26 Sep 2025) and extended the weekly losses. Heavyweights ITC (-1.35%) and Hindustan Unilever (-1.87%) dragged the sector. Steep losses in VBL (-6.26%), Godrej Consumer (-6.05%), Patanjali (-3.27%), and Emami (-3.75%) added further pressure, while Tata Consumer (-0.69%) and United Breweries (-1.05%) showed relative resilience. With all 15 constituents declining, market breadth remained extremely weak, reflecting ongoing concerns over soft urban demand and cautious consumer sentiment.

NIFTY AUTO – Index Slides Amid Broad Declines

Weekly Performance: -2.7%

date	open	high	low	close
2025-09-26	26694.7	26861.4	26463.7	26484.6
2025-09-25	26951.7	26975.2	26718.3	26758.5
2025-09-24	27319.5	27326.9	26990.8	27007.6
2025-09-23	27355.4	27725.8	27284.8	27321.9
2025-09-22	27256.1	27386.1	27105.3	27154.3
2025-09-19	27319.4	27367.8	27195.1	27219.6

Source: NSE

Figure: Recent performance

The NIFTY Auto index slipped 2.70% in the week ending 26 September 2025, partially reversing three consecutive weeks of gains. Heavyweights Mahindra & Mahindra (-5.45%) and Tata Motors (-4.88%) led the decline, while Bajaj Auto, Bharat Forge, and TVS Motor also weighed on the index. On the upside, Maruti Suzuki (+2.66%), Eicher Motors (+1.05%), and Ashok Leyland (+0.74%) provided some support, but the limited breadth, with only three advancers against 12 decliners, highlighted sector-wide caution amid profit booking after a strong multi-week rally.

Among the top performers, Maruti Suzuki led gains supported by festive demand, GST cuts, and strategic price adjustments. Eicher Motors and Ashok Leyland showed resilience in strong two- and commercial-vehicle demand. MRF and Hero MotoCorp faced profit-booking pressures, reflecting cautious sentiment despite sector positives.

NIFTY PHARMA – Sharp Reversal as Index Slides 5% Amid Broad Decline

Weekly Performance: -5.2%

date	open	high	low	close
2025-09-26	21623.9	21695.6	21390.2	21507.2
2025-09-25	22219.7	22311.2	21956.2	21977.7
2025-09-24	22291.1	22321.2	22166.4	22180.7
2025-09-23	22386.6	22434.8	22210.2	22299.1
2025-09-22	22668.9	22685.4	22325.5	22365.8
2025-09-19	22636.2	22716.9	22580.8	22686.6

Source: NSE

Figure: Recent performance

The NIFTY Pharma index fell 5.20% in the week ending 26 September 2025, reversing a four-week rally. Heavyweights like Sun Pharma (-4.18%) and Divi’s Laboratories (-8.23%) led the decline, while even the top performers such as JBCHEPHARM (-2.57%) and Abbott India (-2.06%) posted losses. The sell-off was driven by concerns over a proposed 100% US tariff on branded and patented drug imports, affecting companies with export exposure. Most Indian firms focus on generics, limiting long-term impact. Market breadth was extremely weak, with all 20 constituents declining, reflecting broad sector caution.

NIFTY REALTY – Sharp Weekly Decline Ends Recent Rally

Weekly Performance: -6.1%

date	open	high	low	close
2025-09-26	876.0	879.7	866.2	867.2
2025-09-25	890.8	893.5	872.7	875.9
2025-09-24	912.5	915.1	888.2	890.6
2025-09-23	922.3	924.9	910.0	913.3
2025-09-22	924.8	933.8	918.7	921.5
2025-09-19	920.0	927.7	913.8	923.5

Source: NSE

Figure: Recent performance

The NIFTY Realty index fell 6.10% in the week ending 26 September 2025, breaking a four-week rally as heavyweight stocks like DLF (-7.93%), Godrej Properties (-8.75%), Lodha (-6.17%), and Prestige Estates (-6.88%) dragged the sector down. Breadth was weak, with only Anant Raj (+6.14%) posting a gain, cushioning losses slightly. Mid- and large-cap names, including Oberoi Realty, Brigade, and Sobha, faced sharp declines, reflecting ongoing weakness in housing demand, affordability pressures, and cautious market sentiment.