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Stock market news: India's stock indices declined on Friday as investors adopted a cautious stance ahead of U.S. Federal Reserve Chair Jerome Powell's address at the annual Jackson Hole symposium; however, prospects of tax reforms aided the indexes in achieving weekly gains.

The Nifty 50 closed 0.85% lower at 24,870.10 points for the day, and the BSE Sensex dropped 0.85% to 81,306.85.

Over the week, both indices increased by 1%, driven by advances in the automobile and consumer sectors due to optimistic expectations of a demand surge from amendments to the goods and services tax (GST) and S&P's recent upgrade of India's sovereign rating.

Experts suggest that the upcoming week may witness increased positivity for Indian stocks, bolstered by the government’s decision to reduce GST rates and S&P’s upgrade of India's market outlook, both of which come at a vital moment to mitigate the impact of US tariffs.

Equity benchmark extended gains over second consecutive week fueled by optimism over GST reforms, Russia - Ukraine ceasefire development and rating upgrade from S&P. Nifty 50 gained 1% to settle the week at 24,870. Nifty midcap and small cap relatively outperformed by gaining 2%, each. Sectorally, Barring Nifty PSU Bank all indices closed in green, where, Auto, Realty and FMCG outshone. The weekly price action formed small bear candle carrying positive gap below it, indicating continuation of positive bias.

Key point to highlight is that, the breakaway gap after six weeks decline clearly signifies change

of guard as bulls have taken control, indicating resumption of uptrend. The formation of higher high-low coupled with improving market breadth makes us reiterate our positive stance and expect Nifty 50 to head towards 25,400 in the month of September.

However, in the upcoming truncated week we expect volatility to pick up tracking tariff development (27th August is the tariff deadline), monthly expiry and GDP numbers. Meanwhile, Fed chair Powell's commentary in Jackson Hole symposium would have bearing on the market. Hence, focus should be on accumulating quality stocks backed by strong earnings, especially those poised to benefit from next-generation GST reforms and upcoming festive season as we believe strong support threshold is at 24,700-24,500 zone.

On the structural front, market appears to be absorbing host of negative news around tariff as well as geopolitical issues coupled with FII’s continuous sell-off, wherein Nifty 50 has managed to defend 24,500 on a weekly closing basis (over past 3 months), highlighting strong higher base formationthat bodes well for next leg of up move.

On the market breadth front the % of stocks above 50 days SMA (Nifty 500 Universe) has bounced to 40% from past two weeks reading of 25%. Historically, buying in such scenario has garnered decent returns in subsequent months.

a) Development of Bilateral trade deal negotiations.b) US and India GDP

Dharmesh Shah of ICICI Securities recommends buying Chalet Hotel shares this week.

Buy Chalet Hotel shares in the range of ₹990-1,015. He has Chalet Hotel share price target of ₹1,115 with a stop loss of ₹899.

Disclaimer: The Research Analyst or his relatives or I-Sec do not have actual/beneficial ownership of 1% or more securities of the subject company, at the end of 22/08/2025 or have no other financial interest and do not have any material conflict of interest.

The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.

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