Market in September: Selective Sectors Rally Amid GST Gift

If the stock market were a drama series, September 2025 was the “plot twist” episode where a few heroes rallied while the rest barely survived the cliffhanger.

After two months of red screens in July and August, India’s benchmark indices Nifty and Sensex finally caught their breath. The Nifty 50 inched up 0.8% and the Sensex gained 0.6%, marking a cautious rebound even as global tensions continued to brew.

Just when investors thought things were stabilising, U.S. President Donald Trump decided to shake things up again announcing a $100,000 fee on new H-1B visa applications from 21 September 2025. Unsurprisingly, IT stocks cringed.

But back home, India had its own good news. The GST Council rolled out sweeping tax reforms, simplifying the slabs to 5% and 18%, scrapping the older 12% and 28%. Sure, “sin goods” got hit with a 40% rate, but the move sparked cheer in the Auto and Consumer Goods sectors. It was like a mid-season bonus for investors who had patiently endured two slow months.

Sector Report Card: The Stars and the Strugglers

The PSU Bank index topped the charts, jumping 11.4%, followed closely by the Metal index, which climbed 9.7% thanks to robust global demand and firming commodity prices. The Auto index cruised ahead with 6% gains, proving that the festive mood (and GST perks) had kicked in.

Meanwhile, the defensive FMCG, Oil & Gas and Energy sectors posted modest but steady gains of 2.6%, 4.6% and 4.1% respectively. But not everyone joined the party. IT stocks fell 4.3%, still weighed down by visa restrictions, while Consumer Durables dropped 3.8% and Pharma eased 1.6%.

Mid- and Small-Cap indices, however, showed promise by rising 1.4% and 2%, reflecting growing domestic confidence amid global unease.

FIIs Flee, DIIs Double Down

Foreign investors continued to sell heavily, offloading ₹27,163 crore worth of Indian equities in September alone. Their total exit for 2025 now stands at a massive ₹1.98 lakh crore, bringing the 21-month withdrawal tally to ₹3.19 lakh crore.

But here’s where the story takes a patriotic turn. Domestic Institutional Investors (DIIs), powered by India’s retail investors and SIP investment for beginners, kept buying. In September, they invested ₹65,344 crore, proving once again that domestic faith in the India growth story remains unshaken.

It’s a telling trend that while foreign money chases “cheaper markets,” Indian investors are playing the long game, quietly compounding wealth through mutual funds mobile apps and disciplined SIPs.

FIIs’ Exit and the Silver Lining

Analysts note that FIIs are chasing cheaper markets abroad because India’s valuations remain relatively high. But as earnings improve and valuations normalise in FY27, they’re expected to return just in time to join the disciplined Indian retail investors who never stopped investing in the first place.

And that’s the real story, the quiet confidence of Indian households steadily investing through mutual funds mobile apps, balancing across types of mutual funds and learning that wealth isn’t built overnight, but over time.

Why Asset Allocation Is Your Secret Weapon

Markets go up, down, sideways and sometimes even in circles. But the one thing that always works? Asset allocation.

It’s the simple yet powerful act of dividing your investments across various types of mutual funds - equity for growth, debt for stability and hybrid for balance.

• Risk management: When one sector wobbles, another cushions the fall.
• Behavioural discipline: It keeps you from panic-selling in volatile times.
• Optimised returns: Historical data shows asset allocation drives more long-term success than timing or stock-picking ever could.

Think of it as building your financial thali with a bit of everything keeps the flavour and the balance right.

The Rural Wave That’s Changing the Game

Here’s what’s exciting: Rural India is fast becoming the mutual fund industry’s new powerhouse.

From April to August 2025, rural AUM jumped from ₹12.6 lakh crore to ₹13.53 lakh crore. Their share of total mutual fund assets now stands at 18% which defines a clear shift from traditional savings to market-linked investments. And what’s enabling this quiet revolution? The rise of fintech and the mutual funds application. With easy access, zero paperwork and constant goal based support, even first-time investors in small towns can now invest like seasoned pros.

SIPs: The Unsung Hero of Wealth Creation

If you think investing is only for experts, you need to think again. With tools like MINTIT’s mutual funds mobile app, starting a SIP investment for beginners has never been easier.

SIPs help you invest small, regularly and automatically. They average out market volatility, keep you disciplined and, most importantly, turn your salary into a long-term wealth-building engine. Remember: the best time to start was yesterday. The next best time? Right now.

MINTIT Outlook for October 2025

As we step into October, the global and domestic signals remain mixed with trade tensions abroad as well as policy shifts at home. But one thing’s clear: volatility is temporary, growth is structural.

For investors, this is the perfect time to:

• Review your asset allocation across different types of mutual funds
• Rebalance your portfolio if needed
• Stay consistent with your SIPs through your mutual funds mobile app

Because markets may move in waves, but wealth grows with persistence.

The Takeaway

If September taught investors anything, it’s that short-term noise can’t drown out long-term opportunity. While FIIs may come and go, Indian investors have shown remarkable maturity. They’re no longer chasing trends but riding to build legacies. And with platforms like MINTIT’s mutual funds application, they’re doing it smarter, faster and more confidently than ever before.

So whether you’re a market veteran or someone taking your first step into sip investment for beginners, the message is simple: stay invested, stay balanced and let time do the heavy lifting. Because the best investors aren’t the ones who predict the next big rally, they’re the ones who never stop showing up for it.

MINTIT, India’s dedicated Mutual Funds Platform, caters to your personalised goals and accompanies you to achieve your financial milestones. Depending on your profile it precisely suggests tailored investing plans to achieve your goals with the help of trusted financial advisors. 

Happy Investing!