A weaker-than-expected US jobs report and positive AI- related news-flow supported US tech
Shrikant Chouhan,
Head Equity Research,
Kotak Securities
Mumbai, September 12, 2025: Global equity markets were strong in the past week, while the Indian equity markets (+1.5%) underperformed most markets. Globally, (1) a weaker-than-expected US jobs report and positive AI- related news-flow supported US tech, (2) political change drove a rally in Japan and (3) investors remained bullish on Chinese AI plays. Nifty Midcap and Small cap underperformed by increasing 0.2% each. Autos (+2.7%), IT (+2.6%) and PSU (+2.3%) were the major gainers, while FMCG (-0.3%) was the major sector that was down on a week-on-week basis. Domestic equity markets continue to be driven by expectations of improving consumption in the coming months. Both FIIs and DIIs were net buyers during the quarter.
In Global, in US, the U.S. consumer price index rose to 2.9% on an annual basis in August with yields edging higher. Initial claims for state unemployment benefits jumped 27,000 to a seasonally adjusted 263,000 for the week ended September 6 versus forecast of 235,000 claims. Mexico plans to raise tariffs on vehicles coming from Asia, particularly China, to 50%. In Europe, the U.K. economy stagnated in July, in line with expectations marking a slowdown in growth compared to the 0.4% expansion recorded in June. In Asia, in August 2025, the monthly inflation rate in China ranged at -0.4 percent compared to the same month in the previous year.
