The Indian stock market began the week on a positive note but ultimately surrendered most of its early gains to close flat in a volatile session on September 8, 2025. While continued optimism from last week's GST reforms and favourable global cues provided an initial boost, late-session profit-booking erased the day's advances. The auto sector, however, bucked the trend and continued its spectacular rally. This market wrap breaks down what drove the volatility, which stocks were in focus, and the key news that shaped the day's trading.
Table of Contents
- How Did the Stock Market Perform Today?
- What Caused Today's Market Volatility?
- Which Sectors and Stocks Were in the Spotlight?
- What Were the Day's Biggest News and Stock Movers?
- What Cues Drove Global Market Sentiment?
- Frequently Asked Questions (FAQs)
How Did the Stock Market Perform Today?
After a strong start, the benchmark indices saw their gains evaporate by the closing bell, reflecting investor caution.
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The S&P BSE Sensex finished at 80,787.30, up by a modest 76.54 points (0.09%).
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The NSE Nifty 50 ended at 24,773.15, adding just 32.15 points (0.13%).
Both indices had touched significantly higher levels during the day, with the Sensex crossing 81,171, before profit-takers stepped in.
What Caused Today's Market Volatility?
Today's market action was a classic example of a "buy on dips, sell on rallies" environment, driven by two opposing forces:
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Positive Domestic and Global Cues: The market opened higher, buoyed by continued investor cheer over the recent GST rate cuts. This was supported by positive global sentiment, as soft U.S. jobs data from last week increased hopes for an interest rate cut by the Federal Reserve.
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Late-Session Profit-Booking: Despite the positive start, investors chose to book profits at higher levels, particularly in sectors like IT that had seen recent gains. This selling pressure in the final hours of trading was the primary reason the market gave up its advance.
Which Sectors and Stocks Were in the Spotlight?
The sectoral performance was a mixed bag, with a clear divergence between the auto and IT sectors.
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Top Gaining Sector: The Nifty Auto index was the undisputed star, surging by an impressive 3.30%. This rally was fuelled by major automakers officially announcing price cuts.
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Top Losing Sector: The Nifty IT index was the biggest laggard, falling by 0.94% amid global uncertainties and profit-booking.
Top Gaining and Losing Stocks on Nifty 50:
| Top Gainers |
Top Losers |
| Tata Motors |
Trent |
| Mahindra & Mahindra (M&M) |
Asian Paints |
| Bajaj Auto |
HCL Technologies |
| Adani Ports |
Tech Mahindra |
| Maruti Suzuki |
Larsen & Toubro |
What Were the Day's Biggest News and Stock Movers?
Several key corporate announcements and news items influenced stock-specific action today.
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Auto Price Cuts Ignite Rally: Tata Motors and Mahindra & Mahindra were the day's top performers, with their stocks soaring over 4% each. This came after they officially announced they would pass on the GST benefits to customers, with price reductions of up to ₹1.55 lakh and ₹1.56 lakh, respectively, on their popular models.
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IPO Buzz: LG Electronics is reportedly planning a major ₹15,000 crore IPO in India this October.
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Vedanta's Big Acquisition: Vedanta won the bid to acquire the core assets of Jaiprakash Associates for ₹17,000 crore, beating out a rival bid from the Adani Group.
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SpiceJet Under Pressure: Shares of SpiceJet dropped 5% after the airline reported a consolidated net loss of ₹233.8 crore for the first quarter of the fiscal year.
What Cues Drove Global Market Sentiment?
Global markets started the week on a largely positive footing.
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Asian Markets: Equities in Asia traded higher. Japan's Nikkei index gained 1.8% on the back of stronger-than-expected GDP data and the surprise resignation of Prime Minister Shigeru Ishiba.
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U.S. Markets: U.S. stock futures edged higher, carrying forward the positive momentum from Friday. Weak U.S. jobs data has increased market expectations of a potential interest rate cut by the Federal Reserve as early as this month.
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Commodities: Gold prices hit a record high as a safe-haven asset amid trade uncertainties, while crude oil prices rose on renewed supply concerns.
Frequently Asked Questions (FAQs)
Q1: Why did the stock market close flat after being up for most of the day?
A1: The market closed flat because late-session profit-booking, especially in the heavyweight IT sector, erased the early gains. The initial rally was driven by positive global cues and continued optimism over GST reforms, but investors chose to sell at higher levels.
Q2: Which sector was the best performer today and why?
A2: The Nifty Auto index was the top performer, surging 3.3%. The rally was directly triggered by major companies like Tata Motors and Mahindra & Mahindra officially announcing significant price cuts on their vehicles after the recent GST rate reduction.
Q3: Why are auto stocks like Tata Motors and M&M rallying so much?
A3: Their stocks are rallying because they have announced that they will pass on the full benefits of the recent GST cuts to customers, making their cars and SUVs significantly cheaper. This is expected to boost their sales volumes, especially during the upcoming festive season.
Q4: Which major companies were in the news today?
A4: Tata Motors and M&M were in the news for their price cuts. Vedanta was in the news for acquiring Jaiprakash Associates' assets. On the negative side, SpiceJet's stock fell after it reported a quarterly loss.
Q5: What is the current global market sentiment?
A5: Global sentiment is cautiously optimistic. While concerns about economic growth remain, recent weak U.S. jobs data has increased the probability of an interest rate cut by the U.S. Federal Reserve, which is seen as a positive for equity markets worldwide.