Nifty ends 19 points higher, while the Sensex was up by 150 points
Shrikant Chouhan,
Head Equity Research,
Kotak Securities
Mumbai, September 4, 2025: Today, the benchmark indices witnessed profit booking at higher levels. The Nifty ends 19 points higher, while the Sensex was up by 150 points. Among sectors, the Defense index lost the most, shed over 1.70 percent, whereas the Auto index gained nearly 1 percent. Technically, after a gap-up opening, the market has been consistently witnessing selling pressure at higher levels. On daily charts, it has formed a bearish candle, which indicates further weakness from the current levels. We are of the view that the short-term market outlook remains positive; however, a fresh uptrend rally is possible only after crossing the 24,850/81000 level. Above this, the market could move up to 25,000/81500. Further upside may also continue, potentially lifting the index up to 25,100/81800. On the downside, 24,650/80500 and 24,600/80300 are key support zones for day traders. If the index falls below 24,600/80300, the uptrend could become vulnerable.
Gaurav Garg, Lemonn Markets Desk, adds:
Indian equities witnessed a volatile session on September 4, swinging sharply between gains and losses before closing almost flat. Markets opened on a strong note, driven by sweeping GST reforms that simplified tax slabs to 5% and 18%. The Sensex surged nearly 889 points in early trade to touch 81,456, while the Nifty climbed 266 points to approach the 25,000 mark. Auto, FMCG, and consumer durables stocks led the early rally, with Mahindra & Mahindra jumping over 7.5% alongside gains in Bajaj Finance, Hindustan Unilever, ITC, Tata Motors, and UltraTech Cement. However, much of this optimism was already priced in since the reforms were first proposed in mid-August, leading to heavy profit booking at higher levels.
By the closing bell, the Sensex had lost nearly 700 points from its peak, ending just 150 points higher at 80,718, while the Nifty slipped below 24,850 to settle at 24,734. Market breadth turned negative with more stocks declining than advancing, as profit-taking extended to midcap and smallcap counters.
Global cues also weighed on sentiment. While Japan’s Nikkei and South Korea’s Kospi held in positive territory, Chinese markets dragged down the broader Asian indices. The Shanghai Composite fell 1.6% as regulators prepared fresh cooling measures, and MSCI’s Asia-Pacific ex-Japan index slipped 0.2%. In the U.S., weaker job openings data and dovish Federal Reserve signals boosted hopes of a September rate cut, but the Fed’s Beige Book highlighted economic concerns and tariff-related risks, tempering optimism.
Adding to the pressure, foreign institutional investors continued their selling streak, offloading equities worth ₹1,666 crore. Domestic institutions absorbed some of this with ₹2,495 crore of buying, but couldn’t prevent the broader weakness. So far in 2025, FIIs have pulled out over ₹1.3 lakh crore from Indian equities, with flows shifting toward rallying Chinese markets. Elevated valuations and concerns over the U.S.’s 50% tariff on exports further dampened sentiment.
Technically, the Nifty is holding support in the 24,350–24,500 range, with resistance at 24,770–25,000. A sustained close above 25,000 could reignite bullish momentum, but persistent FII outflows remain a key headwind. Overall, September 4 highlighted a “buy the rumor, sell the news” trade, with GST 2.0 reforms being a long-term positive for consumption but near-term enthusiasm giving way to caution.
