Where is the market headed?
The stock market on 5th September moved in a yo-yo manner with sharp ups and downs. The day began with strong rumors that the US might impose tariffs on IT services, which pushed IT stocks sharply lower. Later, Bloomberg clarified that no such news was confirmed, but the nervousness in the market continued as traders awaited further signals from the US, especially with a key speech expected from the President.
On the domestic front, the GST impact was already factored into prices in the previous sessions, leaving the market with little new trigger. The overall mood stayed indecisive, but importantly, the market has not broken key levels yet, which is still a positive sign.
Market Overview
The Nifty chart reflected this uncertainty, closing at the same level as yesterday despite a strong recovery from intraday lows. The index had dropped to 24,621 but bounced back by nearly 120 points to end flat.
Nifty Next 50
Other indices also stayed muted with Nifty Next 50 slipping just 0.09%, mid-caps up 0.07%, small caps up 0.23%, and Bank Nifty flat at 0.07%. This shows that despite the early nervousness, the market managed to hold steady by the end of the session.
Nifty Mid and Small Cap
Bank Nifty
USD/INR
The USD-INR pair drew attention as the rupee slipped to a new low of 88.36 before settling near 88.24. Many believe this move may have been allowed by the RBI to give exporters some relief during uncertain times, even though it would make imports more expensive.
GOLD
The weaker rupee also supported gold prices, which saw a double boost from both global strength and the falling INR. Gold closed at ₹10,683 per gram, up 0.33%.
Advance Decline Ratio
Heat Maps
In terms of stock performance, the heat map showed strong gains in auto stocks like Eicher Motors, Tata Motors, Mahindra, and Maruti. On the other hand, IT stocks such as TCS, Infosys, HCL Tech, Wipro, and Tech Mahindra were heavily sold. FMCG stocks also faced selling pressure with ITC, Hindustan Unilever, Dabur, and Varun Beverages all lower, mainly due to GST-related concerns. Reliance gained 1%, while Vedanta rose 2.25% with commodities. Swiggy continued its upward run with a 3.7% jump, while Ola slipped another 7% after a sharp rally earlier.
Mover Of The Day
Sectoral Overview
Sector-wise, autos continued to shine, gaining 1.25% and maintaining their position as the best performing sector in the last three months with nearly 13% returns. Capital markets, metals, media, and manufacturing also did well. In contrast, IT fell 1.44%, FMCG 1.42%, real estate 1.16%, and defense 0.35%. Clearly, the market mood was divided across sectors, with selective buying and profit booking dominating the session.
Sector of the Day
Nifty IT Index
Nifty Auto Index
Tweets Of the Day
A key point of concern highlighted was the sharp rise in global money supply in recent years across the US, China, Eurozone, and Japan. The increase in liquidity has been fueling asset prices worldwide, but it also raises risks of inflation. Investors who own assets may continue to beat inflation, while those holding cash in banks could see their wealth erode.
On the domestic side, the breakout in USD-INR reflects a possible strategy to aid exporters, though it could also push up import-led inflation, especially in energy.
