Why Did the Stock Market Settle Flat While Auto and Financial Stocks Rose?
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Synopsis
In a day marked by mixed outcomes, the domestic equity indices ended flat, driven by steady buying in the auto and financial services sectors even as IT stocks faced selling pressure. This showcases the resilience of certain sectors amid broader market volatility.
Key Takeaways
- Market indices closed flat amid mixed performance.
- IT sector faced selling pressure.
- Auto and financial services sectors showed gains.
- Nifty formed a high wave candlestick pattern.
- Psychological support at 25,000 level is critical.
Mumbai, Sep 23 (NationPress) The domestic equity indices concluded the trading session unchanged on Tuesday, as ongoing selling pressure in IT stocks was countered by increased buying in the auto and financial services sectors.
The Sensex finished at 82,102.10, down by 57.87 points or 0.07 percent. The 30-share index opened flat at 82,147.37 compared to the previous session's closing of 82,159.97. Throughout the day, the index remained within a narrow range due to selling in IT and FMCG stocks.
The Nifty index closed at 25,169.50, down 32.85 points or 0.13 percent.
“The markets faced considerable volatility on the Nifty index's weekly expiry day. The Nifty formed a high wave candlestick pattern on the daily chart, highlighting a consolidation phase characterized by trader uncertainty and a lack of clear directional movement,” commented an analyst.
The index has significant psychological support at the 25,000 level, and as long as it remains above this threshold, a rebound towards the 25,300–25,400 zone is probable, the analyst added.
Among the top losers were Tech Mahindra, Trent, Ultratech Cement, Hindustan Unilever, Asian Paint, Eternal, ITC, Bharti Airtel, HCL Tech, Sun Pharma, and HDFC Bank. In contrast, stocks like Axis Bank, Bajaj Finance, Maruti, SBI, Kotak Bank, Tata Steel, NTPC, Tata Motors, Mahindra and Mahindra, and PowerGrid settled higher.
Sectoral indices showed a mixed trend. Nifty Bank gained 225 points or 0.41 percent, Nifty Fin Services ended 31 points or 0.12 percent higher, and Nifty Auto surged 167 points or 0.62 percent. Conversely, Nifty FMCG decreased by 725 points or 1.29 percent, and Nifty IT fell by 251 points or 0.71 percent.
The broader indices mirrored this trend. Nifty Smallcap 100 declined by 97 points or 0.53 percent, Nifty Midcap 100 fell by 202 points or 0.35 percent, while Nifty 100 ended the session 48 points or 0.19 percent lower.
The domestic equity market traded within a narrow range and closed flat, indicating a continued consolidation. The overall sentiment remained cautious, with small- and mid-cap stocks trailing behind the benchmarks. Sector-wise, autos, metals, and financials saw gains due to signs of robust festive demand following GST cuts, while FMCG and realty stocks faced pressure from profit booking, according to a market expert.
Point of View
I emphasize the importance of recognizing market dynamics. The current flatness in the domestic indices reflects a cautious sentiment among investors. While selling persists in the IT sector, the gains in auto and financial services indicate opportunities for growth. It's crucial to remain informed and vigilant in these times of fluctuating market conditions.
NationPress
23/09/2025
Frequently Asked Questions
What caused the stock market to settle flat?
The stock market settled flat due to persistent selling in IT stocks, countered by buying in the auto and financial services sectors.
Which sectors performed well during the trading session?
The auto and financial services sectors performed well, with notable gains in stocks like Axis Bank and Bajaj Finance.
What does the Nifty's high wave candlestick pattern indicate?
The Nifty's high wave candlestick pattern indicates a consolidation phase marked by trader indecision and uncertainty.
Is the Nifty expected to recover above 25,000?
Yes, as long as the Nifty stays above the psychological support level of 25,000, a recovery towards the 25,300–25,400 range is likely.
How did broader indices perform?
Broader indices like Nifty Smallcap 100 and Nifty Midcap 100 also experienced declines, reflecting a cautious market sentiment.
