The Indian stock market closed the day's trading today, September 5, 2025, with mixed results in the face of different sectoral and macroeconomic global uncertainties. The benchmarks recorded marginal fluctuations as investors perceived hints against inflation woes and volatility at the global markets. Sensex closed lower by about 7 points at 80,710, while the Nifty 50 closed flat at about 24,741 levels with minimal 6.70 points gained.
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In today's trading session, initial gains yielded to moderate profit-booking, especially in IT and FMCG segments. The Nifty IT index dropped by more than 1.3%, led by losses in IT big-cap shares like TCS, Infosys, and HCL Technologies. The FMCG index also dropped by approximately 1.2%, with a steep decline in ITC shares that lost more than 2% due to profit booking. Banking & Financial Services were fairly subdued, with private sector banks witnessing some selling pressure.
The auto space defied the general trend, posting gains of more than 1% due to GST-induced reforms and upbeat demand outlook lifting shares like Maruti Suzuki and Mahindra & Mahindra. Pharma, consumer durables, metal, and healthcare sectors posted moderate gains, providing limited respite to the broader market.
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Gainers of the top Sensex were Reliance Industries, Maruti Suzuki, and Power Grid Corporation, which helped drive the sectoral divergence. However, ITC, TCS, Infosys, and HCL Tech topped the list of laggards, indicating investors' cautiousness towards growth and defensive stocks.
In the larger market, the Nifty Midcap and Smallcap indices were moderately green, each gaining nearly 0.3%, indicating selective buying interest in small-cap companies even in the face of volatility in large-cap stocks.
A number of factors shaped today's market mood. Continued euphoria surrounding the just-announced GST reforms continues to support consumer-facing and auto stocks, while worries over still-running inflationary pressures and looming interest rate hikes in other economies affected IT and FMCG stocks.
Moreover, the persistent geopolitical tensions and tariff-induced uncertainties have still kept investors' sentiments on edge. Currency volatility also caused stress, with the Indian Rupee at near historical lows compared to the US Dollar, affecting import-dependent companies and global supply chains.
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Experts predict that the market can expect to witness further volatility in the short term on account of contradictory domestic and international signals. Though there are pockets of strength in cyclical groups such as automobiles and pharma, risk-averse investors can follow selective stock selection and continue to follow a diversified portfolio strategy. Earnings reports lined up during the coming weeks would also be instrumental in determining the direction of the market, along with policy announcements and macroeconomic indicators.
