Mumbai: India’s benchmark equity indices closed Friday’s session with little movement, as strong gains in automobile stocks driven by fresh tax cuts were neutralized by declines in information technology and consumer shares.
The NSE Nifty 50 slipped marginally by 0.03% to finish at 24,724.1, while the BSE Sensex edged down 0.13% to close at 80,608.99. The flat performance came despite optimism in specific sectors, with traders largely balancing fresh policy-driven enthusiasm against global economic uncertainties.
The automobile sector emerged as the day’s strongest performer. The Nifty Auto index climbed 1% after the Goods and Services Tax (GST) Council announced a major cut in levies for small cars, two-wheelers, buses, trucks, and ambulances reducing the tax rate from 28% to 18%. Market participants hailed the decision as a demand booster that could re-energize the auto industry ahead of the festive season.
However, the momentum in autos was offset by weakness in information technology stocks, which fell around 1.2%. Analysts pointed to weaker-than-expected U.S. labor market data, which sparked renewed concerns about slowing growth in India’s largest outsourcing destination. As a result, major IT firms came under selling pressure after showing strength earlier in the week.
The consumer goods segment also dragged the market lower, slipping 1.1%. Shares of conglomerate ITC tumbled nearly 2% following reports of a possible new tobacco levy, which weighed heavily on sentiment across the sector. Broader indices reflected this caution, with eight of sixteen key sectoral indexes ending in negative territory.
Despite the muted tone, there were bright spots. Mid-cap and small-cap stocks managed to hold ground, with both indexes adding about 0.3%. This suggested that domestic investors remained confident in broader market opportunities even as large-cap segments struggled to gain momentum.
Market watchers say the coming weeks will hinge on whether the auto rally can sustain itself, and how IT and consumer stocks respond to evolving global and domestic policy developments. Additionally, foreign investor flows remain a key factor to monitor as global cues shift around U.S. monetary policy and economic outlook.