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Indian equity benchmarks wrapped up the week on a solid note, buoyed by strong domestic macroeconomic data and ongoing policy reforms. The Nifty gained 1.29% to settle at 24,741, while the Sensex climbed 1.13% to close at 80,710. The uptrend was broad-based, with midcap and smallcap indices outperforming, rising 1.8% and 2.5% respectively — a clear signal of rising risk appetite despite persistent global headwinds.Investor sentiment was lifted by India’s Q1 GDP growth of 7.8%, the fastest in five quarters, reinforcing the economy’s resilience. Policy momentum also played a key role, with the GST Council's move to streamline tax slabs to 5% and 18% adding clarity and fueling optimism across cyclical sectors.High-frequency indicators underscored the positive trend: manufacturing PMI surged to 59.3, a 17-year high, while services PMI jumped to 62.9, marking the highest level in 15 years. On the external front, the current account deficit narrowed to 0.2% of GDP, and FDI equity inflows grew ~15% YoY in Q1, reflecting external stability and investor confidence.With this, analyst Sudeep Shah, Vice President and Head of Technical & Derivatives Research at SBI Securities, interacted with ET Markets regarding the outlook for the Nifty and Bank Nifty, as well as an index strategy for the upcoming week. The following are the edited excerpts from his chat:Markets didn't perform very well after the GST 2.0 reform. Why do you think is that?The benchmark index Nifty remained highly volatile throughout the past week, with all five trading sessions opening either with a gap-up or gap-down—reflecting elevated uncertainty in market sentiment. In addition to the erratic openings, the index frequently reversed sharply from intraday highs and lows, creating a challenging environment for traders and keeping market participants on edge.From the recent low of 24404, Nifty staged a pullback rally amid continued volatility and managed to end the week on a positive note. On the weekly chart, it formed a bullish candle with a long upper shadow, indicating selling pressure at higher levels despite the recovery. Technically, the index is trading above its 100-day and 200-day EMA, suggesting that the broader long-term trend remains intact. However, it is oscillating near its 20-day and 50-day EMAs, pointing to indecision in the short to medium term.Notably, all these key moving averages are currently flat, which typically signals a phase of consolidation or sideways movement. This view is further supported by momentum indicators and oscillators such as RSI and MACD, which are also reflecting a lack of clear direction, reinforcing expectations of range-bound action in the near term.In the Nifty index, Banking and IT sectors hold the highest weightage, making their performance crucial to overall market direction. Unfortunately, both sectors have been underperforming, acting as a drag on the index. Weakness in IT stocks and muted momentum in Banking stocks have capped upside potential and contributed to the ongoing consolidation. A revival in these sectors will be key for any sustained bullish momentum.Talking about crucial levels, the zone of 24950–25000 is expected to act as a strong resistance for Nifty. On the downside, the 24550–24500 range is likely to offer immediate support. A decisive and sustained move beyond either of these levels could trigger a fresh trending move in the index.What view would you have about Bank Nifty now?The banking benchmark index, Bank Nifty, has been consistently underperforming frontline indices over the past couple of weeks. This sustained weakness is evident in the ratio chart of Bank Nifty versus Nifty, which is currently trading at a 108-day low—highlighting relative underperformance.Adding to the bearish tone, the Mansfield Relative Strength indicator is quoting below the zero mark, indicating that Bank Nifty is lagging not just against Nifty but also the broader market. Unless there’s a turnaround in momentum, the banking space may continue to act as a drag on overall market sentiment.During the last week, it has traded in a narrow range of 888 points and ended at the 54114 level with a gain of 0.86%. On a weekly scale, it has formed a bullish candle with an upper shadow, which indicates selling pressure at higher levels. Currently, the index is trading below its 20, 50 and 100-day EMA levels. Further, the daily RSI is in the bearish zone as per RSI range shift rules. Going ahead, the zone of 54500-54600 will act as an immediate hurdle for the index. While on the downside, the 200-day EMA zone of 53600-53500 will act as crucial support for the index. A sustainable move on either side will lead to a trending move in the index. How are banking heavyweights HDFC Bank and ICICI Bank placed right now?The combined weight of HDFC Bank and ICICI Bank in the Bank Nifty is nearly 55%, making it imperative for both heavyweights to perform well for the index to do so. Since late July, HDFC Bank has corrected 5.5% from its high of 1019 made on 24th July, while ICICI Bank has corrected 6.5% from its high of 1500 made on 25th July. In contrast, the Nifty has corrected only 2% during the same period, highlighting the relative underperformance of Bank Nifty, largely due to weakness in these two stocks.Currently, both stocks are trading below their short-term moving averages. These averages are edging lower. In contrast, the daily RSI is suggesting sideways action. Hence, these stocks are likely to continue their sideways trend along with bearish bias in the next couple of trading sessions. FIIs remain sellers. What is the expectation here and what effects do you see because of this?FIIs have pulled out nearly 94600 crore from the cash market over the last two months. Sentiment has been weighed down by factors such as US–India trade tensions, weak corporate earnings, a depreciating rupee, and the possibility of a rate cut by the Federal Reserve in its September policy meeting, which could make US markets more attractive. Additionally, valuation concerns and global geopolitical uncertainties have prolonged the selling pressure in Indian equities. That said, ongoing policy reforms provide upside potential for a more stabilized and gradual recovery in foreign flows. However, a large and swift reversal is unlikely without a resolution in trade disputes. Domestic institutional support, meanwhile, could help moderate outflows and foster selective inflows in the near term.What is the view on FMCG and consumer durables post the GST reforms?The Nifty FMCG index has witnessed profit booking after the announcement of GST reforms. Considering the current chart structure, we believe it is likely to witness consolidation in the short term. While Nifty Consumer Durable is likely to continue its northward journey in the short term. It has recently given a horizontal trendline breakout on a daily scale, and it is strongly outperforming the frontline indices. The momentum indicators and oscillators are also suggesting strong bullish momentum. Hence, we believe, it is likely to continue its northward journey in the next couple of trading sessions. Any other sectors that are currently in focus?Nifty Metal: The Nifty Metal index has strongly outperformed frontline indices in the last week. It has given a downward sloping trendline breakout on a daily scale. The ratio chart of the index as compared to the Nifty index has also given a consolidation breakout, and it is currently trading at a 110-day high, further reinforcing relative strength. Currently, all the moving averages and momentum-based indicators are suggesting strong bullish momentum in the sector. Hence, we believe, it is likely to outperform in the short term. Apart from this, Nifty Auto and Consumer Durable are likely to continue their outperformance in the short term. On the flip side, Nifty Private Bank, Financial Services, Defence, IT, Media, Oil & Gas, and Realty sectors are likely to underperform in the short term. Any stocks within those sectors?Technically, several stocks are showing strong relative strength and are likely to continue their outperformance in the near term. Tata Steel Ltd and Jindal Steel & Power Ltd have maintained bullish momentum, supported by favourable price action and volume trends. Swiggy and Eternal is also showing signs of strength, backed by improving sentiment in the food delivery space. Pondy Oxides and Chemicals Ltd (POCL) and Gujarat Mineral Development Corporation Ltd (GMDC) are trading with positive bias, supported by strong technical setups. Goldiam International Ltd continues to show resilience, while Hyundai Motor Company and Ashok Leyland are benefiting from sustained buying interest in the auto sector. Lastly, Lemon Tree Hotels Ltd is holding firm above key support zones, indicating potential for further upside. Overall, these stocks are well-positioned to outperform in the short term, provided broader market conditions remain supportive.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

BMW is confident it can return to growth in its largest market China with the all-electric Neue Klasse series, a major overhaul of the company's portfolio that was kick-started this week with the launch of its first model. "We are more than competitive with this product," Chief Financial Officer Walter Mertl told Reuters. "With increasing availability of the Neue Klasse, we will see growth in China again." Like its European peers, BMW has suffered setbacks in China due to aggressive local competition and a real estate downturn that has put wealthy Chinese consumers off buying new cars. In the first half of 2025, China sales at the German luxury carmaker slumped by 15.5%. "Looking at our future model range, I'm not worried," Mertl said, after BMW took the wraps off its Neue Klasse iX3 electric sport utility vehicle on Friday, which will launch in China by summer 2026. The launch took place ahead of the 2025 IAA car show in Munich, where local car brands are battling with a growing Chinese presence to remain competitive. Batteries in the new vehicles were between 40% and 50% cheaper than those in existing models, Mertl said, a key factor in helping the group boost profitability. With the iX3 50, BMW could achieve margins equal to combustion engine equivalents -- so-called margin parity -- already in 2026, Mertl said. BMW expects an automotive EBIT margin of 5% to 7% in 2025 and Mertl said the goal was to raise that to 8% to 10% in the future. The company plans to phase out its old models by the end of the decade with the roll-out of the Neue Klasse series. Turning to import tariffs in the United States, where BMW has its biggest production plant, Mertl reiterated that the duties would drag BMW's profit margin down by 1.25 percentage points in 2025. The European Union plans to remove duties on imported U.S. industrial goods in return for a U.S. tariff rate of 15% on European cars - down from the current 27.5% - which automakers hope will apply retroactively from August 1.

Mahindra & Mahindra on Saturday announced the price reduction on its passenger vehicles, which range by up to Rs 1.56 lakh with immediate effect following the GST rate cut benefit to customers.The revised prices for all applicable ICE portfolios are effective from September 6, 2025, and will be transparently updated across dealerships and digital platforms, the company said.The company has reduced price of Bolero/Neo range by Rs 1.27 lakh, XUV3XO (petrol) by Rs 1.4 lakh, XUV3XO (diesel) by Rs 1.56 lakh, THAR 2WD (diesel) by Rs 1.35 lakh, THAR 4WD (diesel) by Rs 1.01 lakh and Scorpio Classic by Rs 1.01 lakh.Similarly, price of Scorpio-N is reduced by Rs 1.45 lakh, Thar Roxx by Rs 1.33 lakh and XUV700 by Rs 1.43 lakh.Earlier, Tata Motors and Renault India also announced a cut in vehicle prices owing to GST rate rationalisation. Meanwhile, Maruti Suzuki Chairman, Bhargav, has hinted at massive price cuts too. Mahindra model-wise price cuts post GST reductionModelCurrent GST+ CessNew GSTPrice reduction Bolero/Neo31%18%Rs 1.27 lakhXUV3X0 (Petrol)29%18%Rs 1.40 lakhXUV3X0 (Diesel)31%18%Rs 1.56THAR 2WD (Diesel)31%18%Rs 1.35 lakhTHAR 4WD (Diesel) 48%40%1.01 lakhScorpio Classic48%40%1.01 lakhScorpio N48%40%1.45 lakhThar Roxx48%40%1.33 lakhXUV70048%40%1.43 lakh

India’s retail sector is poised for a consumption-led revival as the GST Council’s recent decision to rationalize tax slabs promises to lower prices across a wide spectrum of goods. Effective September 22, the new structure simplifies the system into two primary slabs—5% and 18%—while retaining a 40% rate for sin and luxury items.The most significant impact is expected in categories such as apparel, footwear, consumer electronics, and daily essentials. Apparel priced between ₹1,000 and ₹2,500 now attracts just 5% tax instead of 12%, boosting affordability in the mid-premium segment, while footwear up to ₹2,500 also sees a steep reduction to 5%. Consumer electronics, including air conditioners and televisions, move to 18% from 28%, while a wide basket of essentials has been lowered to ~5% or even nil in certain cases. The mandatory pass-through of rate cuts to consumers is likely to drive a broad-based reduction in retail prices.These shifts could be particularly supportive of mass and mid-premium demand. Organized players in apparel and footwear are expected to gain competitiveness against unorganized peers, reversing the drag seen when GST on footwear was earlier raised to 12%. Consumer electronics may experience near-term purchase delays as shoppers await the new rates, but festive season demand is projected to accelerate post-implementation. Daily essentials, meanwhile, stand to benefit from both volume uptick and a tilt toward branded consumption.That said, challenges remain. The persistence of inverted duty structures—in which input materials attract higher GST rates than finished goods—has long strained working capital and margins for retailers. Inputs such as synthetic leather, rubber soles, adhesives, and man-made fibers continue to be taxed at 12–18%, creating a mismatch that eats into competitiveness. The government has acknowledged the issue, but clarity on corrective measures is still awaited.The broader policy shift signals a clear push toward consumption-driven growth, reinforced by recent tax cuts and GST reform. With rationalized rates reducing end-prices, organized retail is positioned to capture stronger demand in the mass and mid-premium segments. Over the medium term, this reset could mark a structural boost for the sector, widening the formal market’s share and deepening consumer engagement across categories.Amber Enterprises – TP: 9000Amber Enterprises is continuously increasing the share of components in RACs, adding new clients across AC and consumer durables, and expanding wallet share with existing customers, which supports sustainable growth in the consumer durables division. The GST 2.0 reforms, finalized by the Council, have reduced the rate on RACs from 28% to 18%, materially improving affordability and set to drive a sharp rebound in RAC demand, benefitting Amber as a key supplier to AC manufacturers. Further, with ongoing capex, acquisitions in niche electronics, and diversification across new electronics segments, the company is well-positioned to capture demand acceleration from GST-driven consumption tailwinds. We expect revenue/EBITDA/PAT to deliver a CAGR of 24%/32%/54% over FY25–28.Trent – TP: 6400TRENT’s growth momentum is supported by strong cost controls and disciplined execution, which continue to deliver healthy operating performance. The GST 2.0 reforms, which have reduced rates on apparel in the ₹1,000–₹2,500 price band from 12% to 5%, are expected to materially improve affordability and drive stronger demand across Trent’s key formats, particularly Zudio. We remain positive on Trent given its robust footprint expansion, a long runway for growth in Star (presence in just 10 cities), and the scaling up of emerging categories such as Beauty, Innerwear, Footwear, and LGDs. We expect revenue/EBITDA/PAT to deliver a CAGR of 20%/18%/17% over FY25–28E, aided by GST-driven consumption tailwinds and aggressive store expansion.(The author is Head – Research, Wealth Management, Motilal Oswal Financial Services Ltd)(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)

Urban Company whose initial public offering (IPO) will open for subscription on Wednesday, September 10 has listed key risks in its Red Herring Prospectus (RHP) that investors should be mindful of before investing in the company's Rs 1,900 crore issue. The IPO document talks in detail about internal and external risks and these risks pertain to company's business operations, regulator and legal risks and IPO related risks. Take a look at 12 such warnings: 1) Sustained lossesThe company has reported net losses in recent years. Continued losses could impact financial stability and valuation. The company's EBITDA loss in the June ended quarter widened to Rs 4.8 crore versus Rs 3.4 crore in the year ago period.Certain of the company's subsidiaries and step down subsidiaries, including Handy Home which has a significant revenue contribution, have incurred losses in the past or are currently loss-making, some of which have been deregistered. These losses may continue in future, which could adversely affect the financial condition and results of operations.2) Intense competitionBoth organised and unorganised players compete in home services. Larger aggregators or new entrants could capture market share. The company in its RHP said that it faces intense competition from traditional offline players and due to low penetration of online services across the markets it serves. This has a bearing on its revenue and cost of operations.Limited operating history in some of its business lines such as products under the Native brand, its InstaHelp offerings, small home project offerings, wall panel services for home decor and cleaning subscription services is another caveat given by the company.3) High marketing & customer acquisition costsUrban Company spends heavily on promotions and discounts to attract and retain customers. Rising costs may compress margins. The company spent Rs 51.82 crore in the June quarter of FY26 versus Rs 48.63 crore in the year ago period. It was 14.11% of revenue from operations in Q1FY25 versus 17.32% in Q1FY24.4) Dependency on service professionalsThe platform relies on gig workers (beauty experts, repair technicians, cleaners, etc.). Attrition, dissatisfaction, or inability to onboard skilled professionals could disrupt operations. Its success significantly depends on its ability to maintain and increase its network of service professionals on the company's platform.In the June 2025 ended quarter, average monthly active service professionals stood at 54,347 versus 50,992 in June 2024. But for FY25, the average monthly active service professionals was lower at 47,833.The company also runs the risk of consumers and service professionals circumventing the platform and engaging through other means, thereby adversely impacting the business financial condition and results of operations.5) Legal & regulatory challengesAmbiguity around labor laws, gig worker classification, taxation, and consumer protection rules could expose the company to litigation and compliance costs. For instance, service professionals operating on Urban Company's platform are independent contractors and not employees under the existing regulatory framework of India. Changes in labor and employment laws and regulations that widen the scope of employment may classify service professionals as employees, which could result in additional obligations on the company,6) Technology & data security risksAs a tech-driven platform, it faces risks of outages, cybersecurity breaches, and data privacy issues, which may erode customer trust. The company relies on artificial intelligence (AI), including generative AI and machine learning technologies, which are still emerging and rapidly evolving. Company's failure to successfully develop, integrate, and deploy these technologies, or if its consumers are unable to effectively use them, the business could be harmed.7) Reliance on limited service categoriesA significant portion of revenue comes from beauty and wellness. Slowdown in demand here could hurt growth prospects.8) Geographic concentrationUrban Company earns a large share of revenues from a few top cities. Weakness in demand or regulatory shifts in these regions could impact business disproportionately.9) Cash flow pressuresHigh working capital requirements, delayed payments, or rising payouts to service professionals could strain liquidity.10. Valuation & market risks post-IPOGiven the history of losses and reliance on external funding, there is risk of overvaluation. Post-listing volatility could lead to investor losses.11) Dividend policyCompany's ability to pay dividends in the future will depend upon its future results of operations, financial condition, cash flows, working capital, capital expenditure requirements, and is subject to restrictions under Indian laws and regulations.12) Promoter holdingPost Offer, our Promoters will hold less than 20% of the post-Offer Equity Share capital of our Company and the shortfall of the minimum promoter contribution will be met by VYC11 Limited, one of the Shareholders.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)