Overall market performance
| Index | Close (approx) | Change | % Change |
|---|---|---|---|
| Nifty 50 | 24,773.15 | +32.15 pts | +0.13 % |
| Sensex | 80,787.30 | +76.54 pts | +0.09 % |
| Bank Nifty | 54,186.90 | +72.35 pts | +0.13 % |
| Nifty Midcap 100 | 57,459.3 | +0.67 % | |
| Nifty Smallcap 100 | 17,702.3 | +0.27 % | |
| India VIX | 10.78 | ↓0.67 % |
Auto stocks powered the benchmarks higher on Monday, offsetting weakness in IT and FMCG shares. Midcap and small‑cap indices outperformed the large caps. Market breadth was positive, with 1,745 advances against 1,046 declines at the NSE. Trading activity remained light due to caution ahead of macro‑data releases.
Sectoral performance (NSE indices)
| Sector index | Trend | Key drivers |
|---|---|---|
| Nifty Auto | ↑ 3.3 % (top performer) | Automakers passed on GST cuts, fuelling expectations of demand recovery; Tata Motors, Mahindra & Mahindra, Bajaj Auto and Eicher Motors rallied 3–4 %. |
| Nifty PSU Bank | ↑ 0.5 % | Continued government support and attractive valuations kept PSU banks in demand. |
| Nifty Metal & Oil & Gas | ↑ 0.5 % each | Resilient commodity prices and optimism on infrastructure spending aided metals and O&G names. |
| Nifty Realty | ↑ 0.46 % | Expectation of lower interest rates supported property stocks. |
| Nifty IT | ↓ 0.94 % (laggard) | U.S. growth concerns and a softer rupee spurred profit‑taking in IT majors like Tech Mahindra and TCS. |
| Nifty FMCG/Pharma | ↓ 0.2 % | High valuations prompted booking profits in defensive sectors. |
Key statistics
- Foreign Institutional Investors (FII) were net sellers on 5 Sept at around ₹1,305 crore, while Domestic Institutional Investors (DII) bought ₹1,821 crore. Net institutional flows remained mildly positive, supporting dips.
- Advance/Decline ratio at the NSE: 1,745 advances vs 1,046 declines, indicating positive breadth.
- Most active stocks by value included Netweb, Ola Electric and One Mobikwik, but trading volumes were lower than last week.
Top gainers & losers (Nifty 50)
| Top gainers | Close (₹) | Change | % Gain | What drove the move? |
|---|---|---|---|---|
| Tata Motors | ~721 | +27.80 | +4.02 % | Announced price cuts after GST rate reduction; bullish outlook for electric‑vehicle business. |
| Bajaj Auto | ~9,433 | +349 | +3.84 % | Gains from price cut announcements and robust Q2 sales outlook. |
| Mahindra & Mahindra | ~3,701 | +140 | +3.93 % | Benefited from GST‑driven demand expectations; strong tractor sales guidance. |
| Eicher Motors | ~6,815 | +234.5 | +3.56 % | Royal Enfield price reductions spurred buying interest. |
| JSW Steel | ~862 | +23.5 | +2.79 % | Positive global steel demand commentary and expectation of infrastructure spending. |
| Top losers | Close (₹) | Change | % Loss | Reason |
|---|---|---|---|---|
| Trent | ~5,315 | −213 | −3.85 % | Profit‑taking after a strong run; valuations considered stretched. |
| Asian Paints | ~2,531 | −49 | −1.90 % | Higher input costs and subdued demand outlook weighed. |
| SBI Life Insurance | ~1,781 | −24.4 | −1.35 % | Correction after recent rally; sector rotation into cyclicals. |
| Tech Mahindra | ~1,461 | −17.2 | −1.16 % | IT sector weakness; concerns over slower U.S. tech spending. |
Analysis – what moved the market
- GST rate cut boost for auto & capital goods – The government’s rationalisation of goods‑and‑services tax rates on automobiles led carmakers to announce price cuts (Tata Motors up to ₹1.45 lakh, Mahindra up to ₹1.5 lakh, Hyundai up to ₹2.4 lakh). Expectations of a demand revival ahead of the festive season triggered broad buying in auto and capital‑goods stocks.
- Mixed global cues – U.S. equities closed lower last week after a soft non‑farm payrolls report raised hopes of rate cuts; however, Asian markets (Nikkei +1.52 %, Hang Seng +0.30 %) were resilient. Crude oil traded near US$62.7/bbl and U.S. 10‑yr Treasury yields hovered around 4.08 %. These cues kept risk appetite supported but capped upside.
- Sector rotation – Investors rotated funds out of expensive defensives (IT, FMCG, pharma) into cyclicals like auto, metals and PSU banks. This rotation kept indices buoyant despite profit‑taking in tech stocks.
- Macro caution – Market participants remained wary ahead of domestic inflation and industrial output data due later in the week. Volatility index at 10.78 signalled complacency, but options positioning showed put‑writing near 24,700 and call‑writing near 24,900–25,000, reflecting a range‑bound outlook.
Global cues and commodities
- U.S. markets: The Dow and S&P 500 ended lower on Friday as weak jobs data raised hopes of a pause in Federal Reserve rate hikes. U.S. futures were mildly positive before the release of consumer‑price data.
- Asian markets: Japan’s Nikkei 225 rallied 1.5 % on optimism over corporate earnings, and China’s Shanghai Composite advanced slightly; Hong Kong’s Hang Seng edged up 0.3 %. European markets were flat in early trade.
- Commodities: WTI crude hovered around US$62.8 per barrel. Gold remained above US$3,648/oz amid safe‑haven buying. Copper prices were steady, supporting metal stocks.
- Currencies & Bonds: The rupee remained range‑bound around ₹83 per dollar. U.S. 10‑year Treasury yields dipped slightly to 4.08 %.
Stocks to watch & corporate updates
- Vedanta – Received board approval to acquire Jaiprakash Associates’ cement unit, subject to regulatory clearances. The move could strengthen Vedanta’s diversification strategy.
- SpiceJet – Reported a first‑quarter FY26 net loss of ~₹560 crore due to rising fuel costs and currency depreciation; the stock may remain under pressure.
- Aurobindo Pharma – The U.S. FDA issued observations for its Telangana facility. Investors should watch for remediation measures and potential product approvals.
- Hyundai Motor India – Announced price cuts of up to ₹2.4 lakh to fully pass on GST benefits. The move may intensify competition in the passenger vehicle segment.
- BHEL – Signed a memorandum of understanding with Greenstat Hydrogen to develop hydrogen fuel‑cell rolling stock; the partnership underscores BHEL’s push into clean‑energy solutions.
Technical outlook for 09 September 2025
- Nifty 50 – The index closed above its 20‑, 100‑ and 200‑day moving averages but remained below the 50‑day EMA. RSI at ~49 indicates neutral momentum. Immediate support lies at 24,623, followed by 24,406; major resistance levels are 24,838, 25,020 and 25,187. Options data show strong put writing at 24,700 and call writing at 24,900–25,000, suggesting a range of 24,600–25,000.
- Bank Nifty – Closed near 54,115; RSI around 38 signals oversold conditions. Support levels are at 53,728 and 53,379; resistance levels are 54,280, 54,720 and 55,248. A close above 54,280 could trigger a short‑covering rally.
- Sensex – Immediate support at 80,695; resistance near 81,049, 81,452 and 81,999. RSI around 47 indicates neutral momentum.
Outlook for tomorrow
The market is expected to open with a cautiously positive tone on Tuesday, supported by strong domestic macros and resilient global cues. However, the following factors may dictate intraday direction:
- Economic data – Investors await India’s August CPI inflation and industrial production data later this week; a higher‑than‑expected inflation print could trigger volatility.
- U.S. CPI & Fed meeting – Upcoming U.S. inflation data will influence global risk sentiment and the rupee; any surprise may prompt swings in IT and banking stocks.
- Auto demand traction – Continued enthusiasm in auto stocks could support the headline indices, but profit‑booking may emerge at higher levels.
- FII flows – Sustained domestic institutional buying is likely to cushion dips; foreign flows may remain choppy.
Technical tone: Nifty is likely to trade within 24,600–25,000 with a positive bias. A break above 25,020 could open the gate for a move towards 25,200, while a dip below 24,600 may lead to retest of 24,400. Traders should use intraday dips to accumulate quality auto, metal and PSU banking names while being cautious on high‑valuation IT and FMCG stocks.
