Market Closing Update |: Indices End Flat After Late Sell-Off; Auto Stocks Shine
The Indian stock market witnessed a volatile session on Monday, September 8, 2025. Despite trading in the green for most of the day, a sharp bout of profit-booking in the last one hour erased all intraday gains. Ultimately, the benchmarks closed almost at the same levels where they opened in the morning.
Nifty 50 closed 32 points higher.
Nifty Bank ended 72 points up.
Midcap and Smallcap indices also finished in the green, supported by strong buying interest.
Key Market Highlights
The 24,800 level on Nifty 50 remained crucial. The index attempted to hold above it but failed to sustain, settling slightly below this resistance zone.
The market mood was positive until late noon, after which selective selling emerged, particularly in frontline indices.
Importantly, profit booking was not seen across the entire market — midcap and smallcap stocks continued to witness accumulation, suggesting underlying strength.
Sector Performance
The auto sector led the rally yet again:
Tata Motors surged 4%
M&M gained 4%
Bajaj Auto climbed 4%
Ashok Leyland added 3.5%
Top losers included Trent (-4%), Asian Paints (-2%), and Nestle India. JSW Steel also figured among top decliners despite reporting a strong 17% year-on-year rise in monthly production volumes, supported by a young and aggressive leadership team.
Weekly Outperformers & Laggards
M&M (+15.5%), Ashok Leyland (+12%), Bajaj Auto, Tata Steel, and Bajaj Finance were among the top weekly gainers.
HCL Tech (-4%), SBI Life (-3%), Wipro, Infosys, and HDFC Life were the key underperformers.
Interestingly, accumulation was visible in IT stocks such as HCL Tech and Tech Mahindra, along with selective FMCG and pharma counters — indicating higher delivery percentages despite near-term weakness.
Midcap & Smallcap Action
Momentum in midcap and smallcap space remained strong:
Cohensys jumped 10%
GMDC rallied 33% after acquiring land in Andhra Pradesh for a new defense equipment facility
Ashok Leyland and JP Power were other notable gainers
On the flip side, counters like Intellect Design, Automation Anywhere, Varun Energy, and Persistent Systems faced heavy selling pressure during the week.
Technical View
Nifty 50 briefly touched 24,900 before slipping nearly 150 points in the final hour to close near 24,750.
The index still trades comfortably above its 20-day and 50-day exponential moving averages.
RSI remains above 50, suggesting no immediate signs of weakness.
Analysts note that a “Head & Shoulders” breakdown will only be confirmed if 24,400 is breached. Until then, no major bearish signals are visible.
FIIs & DIIs
Foreign Institutional Investors (FIIs) continued their selling streak with outflows worth ₹2,170 crore, while Domestic Institutional Investors (DIIs) provided support by buying around ₹3,000 crore. Analysts highlight that without fresh FII inflows, markets may not witness sharp upmoves despite domestic liquidity support
Stock-Specific Updates
Voltamp Transformers: Promoter Kunjal Patel is set to sell 7.88 lakh shares (around 7% stake) via block deal at ₹7,600, a discount to the current price of ₹7,777. Stock remains under pressure.
Vedanta: Shares slipped 2% after acquiring assets of JP Associates for ₹17,000 crore, at a premium to estimated fair value of ₹12,500 crore. However, ICICI Securities maintained a bullish view with a target price of ₹530, citing long-term benefits.
JSW Steel: Posted a 17% YoY production growth with 95% capacity utilization in India and 31% growth in US operations. Stock trades at record highs.
Prudent Corporate Advisory: Acquired mutual fund distribution business of Indus Capital with AUM of ₹2,030 crore and PMS AUM of ₹145 crore. Analysts highlight that the ₹113 crore acquisition can recover its cost within three years, making it an attractive deal.
Outlook
Market participants believe that despite late profit-booking, the broader structure remains intact. With midcap and smallcap indices showing resilience, the risk of a sharp market crash appears limited in the near term. However, sustained upside will depend on renewed FII inflows.
✅ Disclaimer: This article is for informational purposes only. Investors are advised to consult their financial advisor before making any investment decisions.
