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Markets likely to make cautious start amid rise in retail inflation
Sep-15-2025

Indian equity markets are likely to make cautious start on Monday as India’s retail inflation rose slightly to 2.07% in August. Markets participants are likely to adopt wait-and-watch approach ahead of release of India’s WPI inflation data for the month of August. 

Some of the key factors to be watched:

Retail inflation rises marginally to 2.07% in August: The government data showed that retail inflation in August rose slightly to 2.07 per cent from 1.61 per cent in the preceding month, mainly due to increase in prices of vegetables, meat and fish.

India's forex reserves jump $4 billion to $698.27 billion: The RBI data said that India's forex reserves jumped $4.03 billion to $698.27 billion during the week ended September 5, 2025 on the back of a sizeable increase in value of gold reserve. 

India, EU committed to work for mutually beneficial trade pact soon: Commerce and Industry Minister Piyush Goyal said that India and the European Union are committed to work for a balanced and mutually beneficial free trade agreement soon.

India's reliance on US software, cloud services poses economic risks: Think tank GTRI said that India's reliance on US software, cloud services, and social media platforms poses a major economic and security vulnerability in times of geopolitical tensions.

Sebi clears relaxations on large cos IPOs, other reform proposals: The Sebi board approved a slew of reforms and ease of doing business measures that will help IPO-bound large companies and low-risk foreign investors, among other segments.

On the global front: The US markets ended mostly in red on Friday as traders looked ahead to the Federal Reserve's monetary policy announcement.  Asian markets are trading mostly in green on Monday, as investors followed US-China talks in Spain and awaited key economic data from Beijing.

Back home, Indian equity benchmarks extended their winning streak and ended nearly half a percent higher on Friday in line with a global market rally amid rising hopes that the US Federal Reserve will cut interest rates next week. Optimism over a successful conclusion of India-US trade talks has also fuelled a rally in markets. Finally, the BSE Sensex rose 355.97 points or 0.44% to 81,904.70 and the CNX Nifty was up by 108.50 points or 0.43% to 25,114.00. 

Some of the important factors in trade: 

FIEO seeks immediate intervention of RBI amid multiple challenges faced by export sector: The FIEO has sought immediate intervention of the Reserve Bank of India (RBI), citing multiple challenges faced by the export sector, including rising tariffs, input cost inflation, demand volatility, and stressed that banks must act not just as financial enablers but as long-term partners in export sustainability.

Residential real estate sector likely to remain in stabilising phase in FY26: Rating agency ICRA has said that the residential real estate sector is likely to remain in a stabilising phase in FY2026. A material rise in the average selling prices (ASP) of residential units by more than 10% annually from FY2023 to FY2025 continues to pose a drag on affordability of buyers.   

Govt launches Rs 100-crore scheme for startups: New & Renewable Energy Minister Pralhad Joshi has launched a Rs 100-crore scheme for startups to support innovations in green hydrogen production. The scheme will provide up to Rs 5 crore per project for pilot projects in innovative hydrogen production, storage, transport and utilisation technologies.

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