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Indian Stocks Fluctuate Amid IT Woes and Auto Gains
6 Sep
Summary
- Indian markets ended flat on Friday amid IT sector losses
- Global markets rose ahead of US jobs report, boosting risk assets
- Nifty faces resistance at 25,000 level, needs breakout to continue rally
On September 6th, 2025, Indian equity markets ended the trading session in a choppy manner, with the key indices closing almost flat. The weakness in information technology (IT) stocks, hit by concerns over potential US tariffs, offset the gains seen in the auto sector driven by optimism around Goods and Services Tax (GST) cuts.
For the week, the Indian stock benchmarks managed to notch up gains of around 1%, rebounding from the previous week's losses. The NSE's Nifty index gained 6.7 points to close at 24,741, while the BSE's Sensex fell 7.25 points to end at 80,710.76.
Elsewhere in Asia, markets rose ahead of an important US jobs report scheduled for release on Friday evening. China, Hong Kong, Taiwan, Japan, and South Korea all posted gains, with the European Stoxx 600 index also up 1.2% at the time of reporting. The US jobs data, which came out after trading hours in Mumbai, showed the unemployment rate was climbing, increasing expectations of more interest rate cuts by the Federal Reserve. Lower US rates could weaken the dollar and drive more flows into other global markets.
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According to Devarsh Vakil, head of prime research at HDFC Securities, "Indian markets are poised to recover next week, supported by buoyant global cues and expectations of lower US rates, which are expected to boost global risk assets." However, the Nifty faces a strong hurdle at the 25,000 level, and a decisive breakout above this mark is essential for a fresh leg of the uptrend, as per Nilesh Jain, head of technical and derivatives research at Centrum Broking.
The Nifty IT index fell 1.4%, extending losses for the fourth straight day, after an unconfirmed report that the US may impose tariffs on the Indian software services industry sparked a sell-off. The index had slipped up to 3% earlier in the day but pared some losses after the report was withdrawn.
On the other hand, auto shares were the top gainers, with the auto index rising 1.3%, as expectations of GST cuts for vehicles were seen boosting demand. Eicher Motors and Mahindra & Mahindra gained 2.4% and 2.3%, respectively.
