Weekly Market Overview for 18–22 August: Nifty, Sectors, Top Stocks & Outlook

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Weekly Market Overview: 18–22 August 2025

The Weekly Market Overview for 18–22 August 2025 paints an interesting picture of India’s equity market. Despite global uncertainty, domestic indices ended the week with gains, supported by strength in IT, Auto, and FMCG. On the flip side, profit booking in banking stocks kept Nifty Bank subdued. Investors also closely tracked U.S. Federal Reserve signals on rate cuts, which added a fresh layer of optimism to global equities.

This report highlights how benchmark indices moved, which sectors led the rally, where weakness appeared, and which stocks emerged as top gainers and losers. It also outlines the key global market cues and the major economic events to watch in the upcoming week.

Weekly Indices Performance

The Indian stock market closed higher this week, supported by positive sectoral momentum and global cues. While Nifty 50 advanced modestly, its candlestick formation indicated caution.

Index	Weekly Change	Remarks
Nifty 50	+0.97%	Formed a red inverted hammer, signaling cautious optimism
Sensex	+0.88%	Steady gains with large-cap support
Nifty Bank	-0.35%	Profit booking, hovering near key support
Nifty IT	+1.74%	Strong buying interest led by tech majors
S&P BSE SmallCap	+2.34%	Strong outperformance, reflecting retail and mid-cap participation

The resilience in IT and small-caps stood out, showing investor appetite for growth opportunities beyond blue chips. However, the banking index’s underperformance suggests traders are cautious ahead of upcoming macro data.

Top Performing Sectors

The week was dominated by Hardware Technology & Equipment stocks, which rallied sharply, followed by Automobiles, Fertilizers, and Healthcare. FMCG also provided steady support, driven by rural demand optimism.

Rank	Sector	Weekly Change %
1	Hardware Technology & Equipment	+18.34%
2	Automobiles & Auto Components	+5.65%
3	Fertilizers	+5.51%
4	Healthcare Equipment & Supplies	+5.17%
5	FMCG	+4.95%

This strong sectoral spread indicates broad-based participation. Hardware technology’s leadership reflects increasing interest in digital infrastructure and electronics manufacturing plays.

Weak Performing Sectors

Although no sector ended in the red, certain industries showed relative weakness compared to the broader market. Cigarettes & Tobacco, Coal & Mining, and Castings & Forgings struggled to keep pace, reflecting muted investor sentiment.

Industry	Weekly Change %	Remarks
Cigarettes & Tobacco	-2.46%	Regulatory concerns weighed on stocks
Coal & Mining	-1.73%	Weak demand outlook dragged performance
Castings & Forgings	-1.54%	Cost pressures limited momentum
Roads & Highways	-1.49%	Profit booking post strong rally
Aerospace & Defence	-1.43%	Mild correction after earlier outperformance

This signals that investors rotated out of defensives and commodities into growth-driven and consumption-oriented sectors.

Top Gainer Stocks of the Week

Certain stocks witnessed sharp gains backed by volumes and positive triggers.

Stock	Weekly Change %	LTP (₹)	Key Highlight
Godawari Power	+17.68%	238.61	High gain, high volume buying
Lemon Tree Hotels	+16.66%	169.45	Hit a 10-year high
Sundaram Finance	+16.18%	5268.40	Strong financial performance
NAVA	+15.52%	671.85	Steady accumulation
PG Electroplast	+15.12%	563.70	Strong demand in consumer electronics

The rally in mid-cap names highlighted investor enthusiasm for niche growth opportunities.

Top Loser Stocks of the Week

On the flip side, some well-known names faced pressure due to regulatory factors, profit booking, and weak quarterly updates.

Stock	Weekly Change %	LTP (₹)	Reason
BSE	-6.01%	2332.80	Regulatory developments
Tata Communications	-5.33%	1604.50	Weak sentiment in telecom infra
Glenmark Pharma	-5.25%	1937.30	Sector underperformance
Bharat Forge	-4.87%	1123.00	Profit booking after recent rally
Angel One	-4.68%	2518.60	Cooling off after strong momentum

Global Market Overview

Global cues provided a positive backdrop for Indian equities.

U.S. Markets: Dow Jones surged +1.89%, S&P 500 gained +1.5%, both closing at all-time highs after Fed Chair Powell hinted at rate cuts in upcoming meetings.
European Markets: FTSE 100 advanced +1.91%, while Germany’s DAX slipped -0.19%, showing mixed investor sentiment.
Asian Markets: Shanghai Composite jumped +4.18%, Hang Seng gained +0.27%, while Nikkei (-1.72%) and KOSPI (-1.76%) ended in red.

This mixed but largely positive performance globally added confidence to Indian markets.

What’s Next? Key Events to Watch

Looking ahead, the upcoming week carries several domestic and international events that could drive market sentiment.

Date	Event	Forecast	Prior
Aug 27	Ganesh Chaturthi (Market Holiday)	(Market Holiday)	(Market Holiday)
Aug 28	Industrial Production YoY	1.5%	Previous contraction
Aug 28	Manufacturing Production YoY	3.9%	Improved momentum
Aug 29	Government Budget Value	-280.73 BINR	–
Aug 29	Bank Loan Growth YoY	10%
Aug 29	Deposit Growth YoY	10.2%
Aug 29	Forex Reserves	695.11B $
Aug 29	GDP Growth Rate YoY	7.4%	Strong economic outlook

Conclusion: Weekly Market Overview in Focus

To sum up, the Weekly Market Overview for 18–22 August 2025 reflects a resilient market with broad-based gains led by IT, Automobiles, and FMCG, while banking and commodities lagged. Mid-cap and small-cap participation added further strength.

Looking ahead, the upcoming macroeconomic releases, especially GDP growth data and loan growth figures, will guide investor sentiment. If global cues remain favorable and domestic data sustains momentum, Indian equities may continue their upward bias. However, traders should remain cautious around banking and defensive plays, as they could face near-term volatility.

The market thus enters the next week with cautious optimism—supported by strong global signals, sectoral resilience, and retail participation.