The Indian stock market showed mixed signals on September 5, 2025. Sensex and Nifty traded with small moves as investors balanced good news from domestic reforms with worries from global markets.
Sensex today ended the day near 80,704, down by around 14 points or 0.02 %. Nifty today closed near 24,747, a gain of about 13 points or 0.05 %. Both indices stayed close to flat, moving up and down during the session.
The automobile sector was the highlight of the day. Stocks like Mahindra & Mahindra, Maruti Suzuki, and Tata Motors gained more than 1 %. This rise came as traders showed fresh interest in companies expected to benefit from GST 2.0 reforms. Metal stocks also saw some strength, making them potential stocks to buy in the current scenario.
In contrast, the IT and FMCG sectors faced selling pressure. Large companies such as Infosys, TCS, HCL Technologies, and ITC lost more than 1 %. These losses held back the overall market. FMCG stocks also saw profit booking after a strong rally earlier in the week.
Midcap and smallcap indices moved slightly higher, showing gains of about 0.38 %. This added support to market breadth even though large caps stayed flat.
The key factor driving optimism is the GST 2.0 reform, which will take effect from September 22. The new plan cuts tax slabs, leaving only two main rates, 5 % for essentials and 18 % for most other items. Luxury and sin goods will face a 40 % tax. Analysts believe this change will boost the auto sector, metals, and financial services, turning them into top stocks to buy for the coming weeks.
At the same time, global concerns kept traders cautious. Weak US labor data raised fears of slower growth in the US economy. This hurt IT stocks, which depend on overseas demand. Investors are also waiting for new data from China and the next set of inflation figures.
Overall, the day showed a balance of gains and losses. GST 2.0 kept auto stocks strong, while IT and FMCG acted as a drag. Midcaps and smallcaps added some positivity. Market experts predict that volatility will likely continue, with sharp swings as traders react to both local reforms and global news.
Also Read: Stock Market Today: Sensex Drops 191 Points, Nifty Holds 24,691 as GST Reform Reshapes Market