Nifty, Sensex Set for Positive Start: US–India Relations Termed ‘Special’; India–EU Hope to Fast-Track Trade Deal

DSIJ Intelligence-3 / 08 Sep 2025/ Categories: Mkt Commentary, Trending

Nifty, Sensex Set for Positive Start: US–India Relations Termed ‘Special’; India–EU Hope to Fast-Track Trade Deal

Green start on the cards? GIFT Nifty signals gains as investors track global trends, US–India ties, and fresh FTA talks.

Indian equities are poised for a positive opening on Monday, with GIFT Nifty trading 76 points higher at 24,918.5 as of 7:18 AM, tracking gains in Wall Street futures and strength across Asian markets.

Key Catalysts Supporting the Positive Start

  • US Rate Cut Expectations: Investors are eyeing the US Fed meeting on September 17, with the Street largely pricing in a 25-basis point cut. A bigger 50-basis point move could be on the table depending on this week’s inflation numbers. The US PPI will be released Wednesday, followed by CPI on Thursday.
  • US-India Trade Talk: In Washington, President Donald Trump reassured that India–US ties remain strong, calling the partnership “special” and brushing aside concerns over bilateral relations.
  • FTA Talks: India and the European Union begin the 13th round of Free Trade Agreement (FTA) negotiations today, aiming to fast-track a deal that could lift investor sentiment.

Key Domestic Events to Watch This Week

  • Urban Company IPO: The Rs 1,900-crore issue opens on September 10 and closes September 12.
  • Inflation Data: The government will release August CPI numbers on September 12, an important cue for RBI’s policy outlook.

Institutional Flows

  • FIIs: Net sellers on Friday, offloading equities worth Rs 1,304.91 crore.
  • DIIs: Net buyers, absorbing Rs 1,821.23 crore worth of shares, offsetting selling pressure of the FIIs.

Friday’s Action on Domestic Market

Benchmark indices closed mixed after a volatile session. The Nifty gained 6.7 points (0.03 per cent), while the Sensex slipped 7.25 points (0.01 per cent). Sector-wise, Nifty Auto advanced 1.25 per cent, whereas IT and FMCG fell over 1.4 per cent each.

US Markets – Friday Action

Wall Street ended in the red after a disappointing August jobs report. The Dow lost 0.5 per cent, the S&P 500 slipped 0.3 per cent, and the Nasdaq edged down 7.3 points. Job additions came in more than 70% below estimates, pushing the unemployment rate to its highest level since 2021.

Disclaimer: The article is for informational purposes only and not investment advice.