Stock market next week: The Indian stock market closed flat on Friday, September 5, as profit booking persisted amid concerns over Trump tariffs and their economic impact, along with continued foreign capital outflows weighing on investor sentiment.
Despite opening higher on the back of positive global cues and expectations of a US Fed rate cut this month, key indices failed to sustain gains.
The Sensex edged down 7 points to settle at 80,710.76, while the Nifty 50 inched up by 7 points to close at 24,741. The BSE Midcap index slipped 0.10 per cent, whereas the Smallcap index gained 0.09 per cent.
“Looking ahead, sentiment is likely to remain mixed. Domestic growth-linked sectors stand to benefit from GST relief, resilient consumption, and government spending, while uncertainty over global trade negotiations continues to restrain risk appetite. A multi-asset investment strategy is expected to gain traction in this environment. Market attention remains firmly on the upcoming U.S. jobs report, a key macro trigger that could shape expectations for a potential Fed rate cut. Also, investors will closely track key macro cues, including U.S. nonfarm payrolls, unemployment and inflation data, as well as the ECB’s rate decision, for direction in the week ahead,” said Vinod Nair, Head of Research, Geojit Investments Limited.
Top 5 triggers for the Indian stock market
Inflation Data
The Ministry of Statistics will be releasing consumer price index (CPI) data for the month of August 2025 on Friday, September 12.
“The coming week will be data-heavy both domestically and globally. On the domestic front, August inflation data (September 12) will be closely tracked, along with bank credit and deposit growth and forex reserves—especially given the recent underperformance of banks,” said Ajit Mishra – SVP, Research, Religare Broking Ltd.
US Data releases
“Globally, key U.S. data releases—including consumer inflation expectations, PPI, CPI, jobless claims, and consumer sentiment—will be critical in shaping Fed policy expectations and influencing flows,” Mishra added.
Trump tariffs
U.S. President Donald Trump has signed an executive order that could grant tariff exemptions as early as Monday to trading partners that reach agreements on industrial exports, including nickel, gold, other metals, pharmaceutical compounds, and chemicals, according to media reports.
His latest order outlines over 45 categories eligible for zero import tariffs from “aligned partners” that establish framework agreements aimed at reducing Trump’s “reciprocal” tariffs and the duties imposed under the Section 232 national security law.
FIIs and DIIs
Foreign investors (FIIs/FPIs) offloaded Indian equities worth ₹1,305 crore on Friday, while domestic institutional investors (DIIs) made net purchases amounting to ₹1,821 crore, as per provisional exchange data.
DIIs bought shares worth ₹8,812 crore and sold shares worth ₹10,633 crore. Meanwhile, FIIs purchased equities valued at ₹8,096 crore but sold holdings worth ₹9,401 crore.
So far this year, FIIs have been net sellers to the tune of ₹2.15 lakh crore, whereas DIIs have emerged as net buyers with purchases totaling ₹5.24 lakh crore.
Gold prices
Gold’s strong rally gained further momentum on Friday, with prices nearing $3,600 per ounce, as weak U.S. jobs data boosted expectations of Federal Reserve rate cuts that support bullion.
Spot gold rose 1.4% to $3,596.55 per ounce after touching a record high of $3,599.89 earlier. The metal is now set for its biggest weekly gain in nearly four months. Meanwhile, U.S. gold futures for December delivery closed 1.3% higher at $3,653.30.
Back home, MCX gold prices surged to a fresh high of ₹1,07,807 per 10 gm on Friday before closing at ₹1,07,740, marking a weekly gain of more than 3.80% in the domestic market.
“Gold traded with gains of ₹300 at ₹1,06,700 on MCX, tracking Comex gold’s rise near $3,550 as markets positioned ahead of the U.S. Nonfarm Payrolls and unemployment data. Investors remain focused on the Fed’s September meeting where rate cuts are anticipated, while ongoing tariff uncertainties are fueling safe-haven demand. Together, these factors continue to keep bullion in a bullish structure.
The broader setup remains positive as long as prices sustain above ₹1,06,450, with strength expected to extend towards resistance near ₹1,07,260. A decisive break above this could open the path for further gains, while only a fall below ₹1,06,150 would signal weakness,” said Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
