Massive FPI Sell-off: Strong Dollar, Tariff Tensions, and Valuation Woes

Welcome Back Investor!

Equity traders, heads up! Because both Friday (Sept 5) and Monday (Sept 8) are settlement holidays, today’s trades will settle on Wednesday instead of the usual next business day. This temporary T+2 settlement shuffles the pace - but also your planning. It’s a reminder that even small calendar quirks can ripple through deadlines and liquidity.

Let’s dive in!

But before we start!

If you find the contents of this email useful, subscribe now & share with your friends.

Today’s Market Menu

▪️ Impact News

▪️ Markets

▪️ Everything else you need to know today

▪️ Special

▪️ Mindset

▪️ Stock Screener to up your game

IMPACT NEWS

Why Foreign Investors Are Pulling Billions from Indian Markets

The GST Council has just announced one of the most significant overhauls since the tax’s inception - a simplified two-slab structure of 5% and 18%, effective September 22. The move is being called a “next-gen reform,” designed to cut complexity, boost compliance, and spark consumption at just the right time: ahead of the festive season.

So, what changes on the ground? For starters, daily essentials like toothpaste, soaps, and food staples will now carry lower rates, putting a little extra cash back in consumers’ pockets. The auto sector - often seen as a bellwether of economic health - also benefits, with small cars and two-wheelers facing reduced GST. This could unlock demand among middle-class buyers. Similarly, appliances and durables such as refrigerators and washing machines get cheaper, giving a welcome push to FMCG and consumer spending.

Not everything is lighter, though. Luxury products, tobacco, and alcohol remain heavily taxed, showing the government’s intent to protect revenue and discourage high social-cost consumption. Meanwhile, rationalized rates on cement and insurance premiums could help infrastructure growth and financial inclusion.

MARKETS

Indian markets closed higher on September 8, with Sensex up 76 points at 80,787 and Nifty 50 rising 32 points to 24,773, led by strong gains in auto and metal stocks after GST relief measures and global upgrades for steel majors. Optimism was further fueled by softer U.S. jobs data, which boosted hopes of a Fed rate cut, reviving risk appetite. Midcaps outperformed, with the Nifty Midcap 100 climbing 285 points (+0.50%), reflecting broad-based investor confidence driven by policy tailwinds and global cues.
_{Closing figures as on 08.09.25 (3.30pm IST)}

🔎 In Focus

Stock Performance:

Top Gainers

✅ Bharat Forge (+5.82%): Benefited from the auto sector rally driven by GST rate cuts on vehicles. Positive outlook on defense and EV components exports, boosting investor sentiment.

✅ Ashok Leyland (+4.99%): Hit a 52-week high after GST cuts sparked optimism for commercial vehicle demand. Strong order pipeline from defense and infrastructure projects added momentum.

✅ Motherson (+4.20%): Auto ancillary play surged as OEMs passed on price cuts, improving demand visibility. Backed by global expansion plans and steady quarterly performance.

✅ Mahindra & Mahindra (+3.93%): Announced price cuts up to ₹1.56 lakh across SUV range post-GST reduction. Brokerage upgrades (BoFA, others) lifted stock on robust demand prospects.

Top Losers

🔻 Amber Enterprises (-4.11%): Stock corrected after a strong run-up linked to GST-led demand hopes. Weak near-term consumer durables outlook weighed on sentiment.

🔻 Blue Star (-3.05%): Cooling products maker slipped on fears of slower festive season demand. Investors booked profit after recent gains tied to GST benefits.

🔻 Supreme Industries (-2.53%): Decline due to higher input cost concerns impacting margins. Cautious outlook on PVC demand and real estate-linked sales.

🔻 Trent (-3.85%): Retail stock dipped amid concerns of high valuations after recent highs. Profit booking ahead of festive season sales cycle.

INDIA FRONTIER

Everything else you need to know today

☀️ Bright: Gautam Solar has unveiled a Rs 4,000 crore investment to launch a 5 GW solar cell plant in Gwalior, Madhya Pradesh, using cutting-edge TOPCon technology. Phase 1 (2 GW) wraps by 2026 - with a planned IPO to fund Phase 2 expansion. It’s a bold bet on building a homegrown solar value chain and reducing import reliance.

🌍 Ripple: India’s Chief Economic Adviser warns that Trump’s 50% tariffs could shave off 0.5-0.6% of GDP this year if prolonged - with textiles and jewellery likely to take the biggest hit. Yet, India’s growth forecast remains solid at 6.3-6.8%, thanks to strong Q1 momentum, tax cuts, low inflation, GST relief, and fiscal support.

⚡ Disconnect: India has revoked grid access for about 17 GW of delayed clean energy projects to prioritize those already near or at completion. Champions like Adani Green, ReNew Power, NTPC, and others are affected - and appeals are now queued at the regulatory level.

✈ Cleared: SpiceJet has fully repaid $24 million in dues to UBS-owned Credit Suisse, closing a chapter of legal wrangling that began in 2015. This settlement maintains calm skies for the low-cost carrier, letting them steer clear of turbulence.

SPECIAL

Is a Personal Loan the Right Choice for Financing Home Appliances?

Upgrading your home with the latest appliances - a smart fridge, washing machine, or 4K TV - can feel exciting, but the cost often makes buyers pause. This is where personal loans come in, offering quick access to funds without the need for collateral.

Unlike credit card EMIs, personal loans usually come with lower interest rates (10-24% annually), depending on your credit score and income profile. They also provide flexible repayment tenures ranging from 12 to 60 months, allowing you to spread costs comfortably. However, it’s crucial to factor in processing fees (1-3%) and prepayment charges, which can add to your overall expense.

That said, personal loans aren’t always the cheapest route. Many retailers now offer no-cost EMI schemes or consumer-durable loans, often with tie-ups from banks and NBFCs. These can reduce your repayment burden significantly, provided you qualify.

So, is a personal loan the right fit? If you need quick funds, want flexibility, and can handle higher EMIs responsibly, it’s a solid option. But if zero-cost financing schemes are available, those may save you money in the long run.

THE HANOOMAAN INSTITUTE

Why Your Financial Momentum Truly Comes Alive After $100K

Building wealth often feels slow and frustrating - until you cross that first $100,000 milestone. That’s when things start to change.

Bigger Returns, Same Effort: At a 7% return, $10K only earns $700. But with $100K, the same return generates $7,000 - often more than many people save in a year.

The Snowball Effect: Once your investments reach six figures, compounding really kicks in. Every dollar you earn and reinvest makes the base grow faster, and your money starts working harder than you do.

From Surviving to Thriving: Hitting $100K often means you also have an emergency fund. That financial cushion shifts your mindset from survival mode to growth mode. You can take smarter risks and worry less about setbacks.

Access to Better Opportunities: With more capital, doors open: lower investment fees, better banking terms, and even access to exclusive funds or IPOs that weren’t available at smaller amounts.

Stronger Financial Stability: A $5,000 expense is half your wealth if you only have $10K, but just 5% if you have $100K. The more you build, the less life’s surprises knock you off course.

👉 The first $100K is the hardest - but once you get there, the momentum of compounding, confidence, and opportunity makes wealth-building much easier.

SUPERCHARGE YOUR INVESTING SKILLS

STOCK SCREENER TO UP YOUR GAME

The Bull Cartel
by - Pratyush

YOY Quarterly sales growth > 15% and
YOY Quarterly profit growth > 20% and
Net Profit latest quarter  > 1

Thanks for reading.

Until tomorrow!

Hanoomaan India Business team

Content, news, research, tools, and securities symbols are for educational and illustrative purposes only and do not imply a recommendation or solicitation to buy or sell a particular security or to engage in any particular investment strategy. More details click here