Overview
- Nifty 50 dropped 43 points and Sensex fell 191 amid volatile trading on September 5, 2025.
- IT and banking stocks dragged indices, while autos and midcaps gained on sectoral rotation.
- GST reforms slash rates on essentials, durables, autos, while luxury goods face higher taxes.
Indian stock market today experienced volatility with benchmark indices struggling to maintain early gains. After opening above the 24,800 mark, the Nifty 50 gradually lost momentum and traded below the 24,700 levels during the session. It declined by 43.25 points to trade at 24,691.05, representing a marginal drop of 0.17%. Sensex also followed a similar trajectory, falling 191.55 points to settle at 80,526.46, down by 0.24% at press time. Let’s see how different stocks and sectors are performing today based on Moneycontrol live market data.
Banking and technology sectors were among the primary drags on the market, with Nifty Bank index declining 0.36% to 53,882.70. Meanwhile, Nifty IT index suffered a bigger fall of 1.42% to 34,644.40. IT sector extended its losing streak for the fourth consecutive day, reflecting ongoing concerns about global technology demand and currency pressures.
Sectoral Performance and Individual Stock Movements
The broader markets displayed resilience compared to large-cap indices, with BSE Smallcap index up by 0.20%. Nifty Midcap 100 index outperformed with a rise of 360 points. Thus, indicating for mid and small-cap opportunities.
Among the top gainers on Nifty 50, Mahindra & Mahindra led the charge with a 2.50% increase to Rs. 3,568.60. It is followed by Eternal at Rs. 334.40 (up 2.50%) and Eicher Motors gaining 2.03% to Rs. 6,555.50. The automotive sector showed strength, with Maruti Suzuki share price also advancing 1.28% to Rs. 14,850.
On the downside, ITC stock emerged as the biggest loser on Nifty 50, falling 2.32% to Rs. 406.75. At the same time, technology stocks like TCS shares and declined 1.71% and 1.26% respectively. Nestle also contributed to the market weakness with a 1.29% drop to Rs. 1,196.90.
Individual Stock Highlights
Several stocks made big moves during the session. Gujarat Mineral Development Corporation (GMDC) surged 9.02% to hit a 52-week high of Rs 503.90, its strongest performance in seven weeks as reported by Business Standard.
Prime Focus, backed by actor Ranbir Kapoor, jumped 10% to the upper circuit at Rs 158.37. This follows a large block deal involving a 1.53% equity stake, according to a CNBC TV18 report. However, Analytics Insight couldn’t independently verify if the actor has acquired Prime Focus shares as of yet.
On the other hand, Mint reports that Mobility shares continued its decline for the second consecutive day, falling 4.04% to Rs 61.98. The stock has been under pressure recently, trading nearly 50% below its 52-week high. Meanwhile, Abril Paper Tech made a weak market debut on the BSE SME platform, listing at a 20% discount to its IPO price, according to an HDFC Sky report.
GST Reform: Key Implications for Investors
The Goods and Services Tax Council’s approval of a comprehensive tax structure overhaul, a huge change since GST implementation in 2017. The , effective September 22, consolidates the current four-slab system (5%, 12%, 18%, 28%) into primarily two rates, 5% and 18%, with a special 40% slab for luxury items.
This restructuring presents mixed implications for various sectors. Food and beverage companies are likely to benefit, with many items, including butter, ghee, dry nuts, ice cream, and beverages, seeing tax reductions from 18% to 5%. The textile and footwear sectors will also gain from reduced rates, potentially boosting consumer demand.
The consumer durables sector is expected to face a significant positive impact, with air-conditioners, dishwashers, and televisions moving from a 28% to an 18% GST rate. Similarly, the automotive sector will see relief for small cars and motorcycles, while cement companies benefit from a rate reduction from 28% to 18%.
However, some sectors face challenges. Soft drink manufacturers, such as Coca-Cola and Pepsi, will experience margin pressure as carbonated beverages are now subject to a 40% GST, up from 28%. Luxury car manufacturers and tobacco companies will also face higher tax burdens under the new regime.
The emerges as a clear winner, with life-saving drugs and medical devices seeing significant rate reductions. Insurance companies will benefit from nil tax on individual life and health policies, potentially driving higher adoption rates.
Market Outlook
Foreign institutional investors continued their selling streak, with net outflows of Rs. 106.34 crore, while domestic institutional investors provided support through net purchases of Rs. 2,233.09 crore. The market’s near-term direction will likely depend on how effectively companies pass through GST benefits to consumers and the resulting impact on demand patterns. Nifty trades below key technical levels, hence, investors should monitor sectoral rotation opportunities arising from the GST changes while remaining cautious about overall market momentum.
FAQs
1. Why is Indian stock market down today?
The Indian stock market traded in the red as benchmark indices failed to hold early gains. Nifty 50 lost 43 points, and Sensex declined by 191 points. Weakness in IT and banking stocks pulled the market lower, while foreign institutional investors continued selling, further pressuring indices. Despite midcaps showing resilience, overall momentum was negative, reflecting caution around global demand trends.
2. Which sectors were most impacted during the trading session?
The IT sector was the biggest drag, falling 1.42% and marking its fourth straight day of decline. Banking also slipped, with Nifty Bank down 0.36%. Conversely, auto stocks like Mahindra & Mahindra and Eicher Motors posted strong gains. Mid and small-cap indices outperformed, indicating investor preference for broader opportunities even as large-cap indices remained under pressure.
3. How will the new GST overhaul affect different industries?
The GST Council’s reform reduces most rates to 5% and 18%, with a special 40% slab for luxury goods. FMCG, healthcare, textiles, footwear, and consumer durables benefit from lower taxes. Auto and cement also see relief. However, luxury carmakers, tobacco firms, and soft drink companies face higher burdens due to increased rates, particularly with carbonated beverages now taxed at 40%.
4. What are the implications of the GST changes for consumers?
Consumers are likely to benefit from reduced prices in essential categories like food, medicines, textiles, and durable goods. Lower GST on items such as butter, cement, small cars, and appliances may improve affordability. However, luxury items like premium cars, tobacco, and carbonated drinks will become more expensive. The changes aim to simplify taxation and encourage broader demand.
5. What is the near-term stock market outlook for investors?
The market’s trajectory will depend on how companies pass GST benefits to consumers and how demand shifts across sectors. While domestic institutional investors supported the market, FIIs remained net sellers. Investors should watch for sectoral rotation opportunities, especially in consumer-driven industries, while being cautious about global headwinds and volatility in large-cap IT and banking stocks.