On September 5th, the Sensex closed 0.01% lower at 80,710.76 points, while the Nifty closed 0.03% higher at 24,741 points. Out of 3,121 stocks traded on the NSE, 1,644 advanced and 1,370 declined. According to experts, the immediate impact of news related to GST was limited, but it could prove positive for the market in the long run.
Stock Market Closing: The Indian stock market witnessed a mixed trend on September 5th. The Sensex closed with a marginal decline at 80,710.76 points, while the Nifty closed with a slight gain at 24,741 points. On the NSE, out of 3,121 stocks, 1,644 closed with gains and 1,370 with losses. The market saw pressure from IT stocks and selling by FIIs. Experts believe that the recent news related to GST did not show an immediate impact, but in the long term, it can boost corporate earnings and the consumption sector.
Today's Performance of Sensex and Nifty
Today, the Sensex closed at 80,710.76, down by 0.01 percent or 7.25 points. Meanwhile, the Nifty closed at 24,741, up by 0.03 percent or 6.70 points. This indicates that investors adopted a mixed approach throughout the day, and an effort towards market balance was observed.
Trading Activity on NSE
A total of 3,121 stocks were traded on the NSE today. Out of these, 1,644 stocks closed with gains, while 1,370 stocks closed with losses. Additionally, the prices of 107 stocks remained unchanged. This data suggests that liquidity was maintained in the market, and investors engaged in active trading.
Impact of Major News on the Market
Today, the market saw pressure from IT sector stocks. Despite significant news such as the recent GST reduction, the market's response remained subdued for the second consecutive day. According to experts, this is a "sell on news" syndrome, where investors book profits immediately upon the arrival of major news.
Dipen Mehta, Director at Elixir Equities, stated that news regarding GST rate cuts was anticipated. Now that this news has been confirmed, investors have started booking profits in the market. According to him, this move will help increase corporate earnings in the long run, and companies' income is expected to improve after the festive season.
Caution Advised in Short-Term Trading
According to Gautam Shah, Founder of Goldilocks Premium, the market is currently in a consolidation phase. In the medium term, there is significant support at the 24,200 mark and resistance around the 25,000 mark. He added that the sentiment towards the market is positive, as several major steps have been taken in the last six months.
Dipen Mehta mentioned that consumption sectors might witness a surge due to improved corporate earnings during the festive season. Experts believe that if an investor's horizon is 6 to 12 months, this might be a suitable time to buy. However, for traders with a 2 to 4-week outlook, the market will remain challenging.
Top Gainers and Losers
IT sector stocks faced pressure in the market today. Conversely, some stocks in the metal and banking sectors saw gains. Top gainers included NTPC, IndusInd Bank, and Asian Paints. Top losers included Tech Mahindra, Infosys, and Wipro.
