Indian stock market: Indian indices – Sensex and Nifty 50 – started the month of September on a higher note, supported by stronger-than-expected June-quarter GDP figures and a U.S. court decision that ruled most of President Donald Trump’s tariffs illegal but allowed them to remain in effect until mid-October.
On Monday, BSE Sensex rose 333.94 points, or 0.42 per cent, to start at 80,143.59, while the NSE Nifty gained 84.45 points, or 0.35 per cent, to begin at 24,511.30.
“Indian equities head into September balancing global volatility and domestic resilience. Donald Trump’s tariff threats have unsettled global trade flows, but India appears better cushioned this time,” said Anirudh Garg, Partner and Fund Manager INVasset PMS.
Both Nifty 50 and Sensex closed August in the red for the second consecutive month, weighed down by concerns over the impact of U.S. trade policies on India’s economic growth and corporate earnings.
U.S. Court has declared that most of the tariffs imposed during Donald Trump’s presidency were unlawful but permitted them to remain in effect temporarily as the administration plans to appeal to the Supreme Court. Among these, Trump had imposed 50 per cent tariffs on Indian goods — some of the highest on any trade partner.
Meanwhile, market watchers are closely monitoring Prime Minister Narendra Modi’s first visit to China in seven years, where he will attend Shanghai Cooperation Organisation meetings alongside Russian President Vladimir Putin and other Asian leaders.
How’s Indian stock market likely to perform in September 2025?
Garg further said that September could mark the start of an upswing for Indian markets, provided global volatility is managed.
“ Sectors linked to consumption—autos, FMCG, retail, and financials—stand out as near-term beneficiaries, while capital goods and defense continue to ride on government capex. The setup suggests volatility, but with improving macros and festival-led demand, equities are poised for a stronger H2 FY26,” Garg added.
On the other hand, Prashanth Tapse Sr VP Research Analyst at Mehta Equities Ltd, believes that in near-term market sentiment is likely to stay volatile and cautious, with traders awaiting follow-up headlines on U.S. tariff developments and updates from the India–China meeting. Risks remain tilted to the downside if export-oriented businesses see further earnings pressure from Trump’s tariff measures.
“On the positive side, the outlook could brighten if the upcoming GST Council meeting adopts a supportive stance, providing much-needed relief to help the economy withstand tariff-related headwinds. In the meantime, the rupee’s vulnerability and the trajectory of foreign institutional investor (FII) flows will remain critical watchpoints, as stability in these areas will play a key role in restoring confidence and improving overall market sentiment,” Tapse said.
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