Market Holds Choppy Trade; Autos Extend Rally, Realty & FMCG Drag

📰Daily Market Wrap-Up by Stock Whisperers- September 05, 2025

Author

thestock whisperers
September 05, 2025

September 05, 2025

📈 Market Overview:

Market Overview

Summary of the Day's Market Performance

  • The Sensex fell 7.25 points (-0.01%) to close at 80,710.76, ending a volatile session flat.

  • The Nifty rose 6.70 points (+0.03%) to 24,741.00, holding steady.

  • Midcap and Smallcap indices traded flat, showing stability in broader markets.

  • Auto index gained 1.3%, Media and Metal up 0.5% each, while Realty, FMCG, and IT fell 1% each.

💸 Market Transactions:

  • Foreign Institutional Investors (FII): Sold ₹1,327.24 crore

  • Domestic Institutional Investors (DII): Bought ₹1,773.59 crore

DII inflows supported the market’s flat close, countering FII outflows.

Summary: GST Update SEP 2025 Early Diwali Gift from Modi Government

  • The GST Council approved a simplified two-tier system (5% and 18%, with a new 40% slab for luxury/sin goods), effective September 22, 2025, aligning with Navratri.

  • 0% (Exempted): Includes fresh foods, Indian breads, life-saving medicines, and life/health insurance premiums.

  • 5% Slab: Covers processed foods (e.g., biscuits, ghee), toiletries, footwear/garments under ₹2,500.

  • 18% Slab: Applies to consumer durables (e.g., ACs, TVs), small cars, and cement.

  • 40% Slab: Targets luxury cars, tobacco, aerated drinks, and gambling (tobacco implementation tied to debt clearance).

  • Cheaper: Household goods, health services, small cars, economy air tickets/hotel stays under ₹7,500.

  • Costlier: Luxury items, sugary drinks, online gaming.

  • Impact: A ₹48,000 crore revenue loss is expected, offset by increased consumption and compliance, boosting sectors like Autos and FMCG.

📊📑 Important Observations and Market Sentiments: Editor Special

  • Indian equities ended flat but rebounded from intraday lows, with buying at support levels reflecting mild optimism. The auto sector extended gains on demand revival hopes post-GST cuts (effective September 22), while broader markets outperformed with mid- and small-cap strength as domestic investors sought value and growth.

  • Global cues supported sentiment, with U.S. and Asian markets rising ahead of the U.S. jobs report, a key trigger for Fed rate cut expectations. Domestic factors like GST rationalization and a potential RBI rate cut bolster confidence, though tariff threats (25% on steel/aluminum) and geopolitical tensions (Russia-Ukraine) persist.

  • Analysts expect a range-bound Nifty (24,600–24,900), with a buy-on-dips, sell-on-rallies strategy likely—watch the U.S. jobs data tomorrow!

❓ DO YOU KNOW?

The U.S. jobs report, due tomorrow, is expected to show a 175,000 job gain in August, with a 4.2% unemployment rate, potentially influencing the Fed’s September rate decision.

📰Stock News:

Key Stock Movements and News

  • Top Gainers: M&M, Eicher Motors, Maruti Suzuki, Dr Reddy's Laboratories, and Power Grid

  • Top Losers: ITC, TCS, Cipla, HCL Technologies, and Infosys

  • Mahindra & Mahindra (M&M) surged 2.50% after GST cuts from 28% to 18% on small cars and strong August sales boosted auto sentiment.

  • Eicher Motors gained 2.42%, supported by positive auto sector sentiment post-GST reforms.

  • Shriram Finance rose, driven by NBFC strength following GST rate cut announcements.

  • ITC fell due to profit-taking in FMCG amid weak rural demand concerns.

  • TCS dropped, impacted by IT sector weakness and global demand worries.

  • HCL Tech declined, reflecting IT profit-taking.

  • Infosys fell, hit by IT sell-off amid global tech concerns.

  • Ola Electric dropped 4.2% to ₹61.82 after SoftBank trimmed its stake to 15.68%, affecting EV sentiment.

  • Reliance Communications fell 3% after Bank of Baroda labeled Anil Ambani and RCom loan accounts as ‘fraud’, hitting telecom.

  • Bharat Forge was in focus after its subsidiary secured a land deal in Andhra Pradesh, boosting defense/auto ancillary sentiment.

  • Biocon gained attention after announcing a ₹4,500 crore QIP, lifting biotech interest.

Markets Enter September on Cautious Note: Tariff Heat, FII Outflows Weigh; All Eyes on US Jobs Data

September 01-05, 2025

The week of September 1-5, 2025, follows a bearish close with Sensex at 79,809.65 and Nifty at 24,426.85, pressured by US tariffs and FII outflows. Consolidation is expected in the 24,300-24,900 range (Nifty), with volatility from US jobs data and PMI releases. Tariff truce extensions provide relief, while Q1 earnings wind down amid subpar growth. Opportunities in banking, tech, auto, and energy sectors, with a stock-specific approach advised amid global rate-cut optimism and domestic resilience.

👀Stocks to Focus:

  • M&M: Auto sector momentum to monitor.

  • TCS: IT weakness to watch.

  • Biocon: QIP impact to observe.

📝Summary:

Indian markets ended flat, with Nifty at 24,741, as auto gains offset IT and FMCG losses amid volatility. Midcaps/Smallcaps held steady, supported by DII buying, while global cues and GST benefits lift sentiment. Focus on U.S. jobs data tomorrow!

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Disclaimer: The Stock Whisperers is a media platform providing educational and informational content related to the stock market. We do not offer investment advice, stock recommendations, or tips. Readers should consult a SEBI-registered advisor before making any investment decisions.