The Indian stock market ended largely flat on Friday, with profit booking and concerns over potential U.S. tariffs dampening investor mood despite firm global cues. Persistent foreign capital outflows further weighed on sentiment.
The Sensex slipped 7 points to close at 80,710.76, while the Nifty 50 edged up 7 points to end at 24,741. Broader markets were mixed, with the BSE Midcap index down 0.10% and the Smallcap index inching higher by 0.09%.
Markets opened stronger on expectations of a U.S. Federal Reserve rate cut later this month but failed to sustain gains. Analysts said volatility is likely to persist as investors balance domestic resilience against global uncertainties.
Key Market Drivers
Inflation data: India’s CPI inflation for August 2025 will be released on September 12, a critical domestic trigger.
U.S. macro cues: Global investors will watch U.S. CPI, PPI, jobless claims, consumer sentiment, and inflation expectations, all key inputs for Fed policy decisions.
Trump tariffs: U.S. President Donald Trump has signed an executive order to potentially grant tariff exemptions on industrial exports—including metals, pharmaceuticals, and chemicals—as early as Monday.
FIIs vs. DIIs: Provisional data showed **foreign institutional investors (FIIs/FPIs) sold equities worth ₹1,305 crore, while domestic institutional investors (DIIs) were net buyers at ₹1,821 crore.
Outlook
Analysts expect a mixed trend ahead, with GST relief, resilient consumption, and government spending supporting domestic growth sectors. However, global trade tensions and upcoming U.S. data releases—particularly the jobs report—remain crucial in shaping risk appetite.