India’s benchmark stock market indices ended the day almost unchanged, reflecting a tug-of-war between sectoral gains and losses. The S&P BSE Sensex slipped marginally by 7.25 points, closing at 80,710.76, while the NSE Nifty50 managed a small gain of 6.70 points, settling at 24,741.00. Despite starting the session on a weaker note, both indices recovered from intraday lows as buying support emerged, particularly in auto stocks, which helped offset the drag created by weakness in the IT sector following GST-related developments.
Vinod Nair, Head of Research at Geojit Investments Limited, remarked that although equities finished flat, the overall sentiment leaned slightly positive. He attributed this to selective buying at support levels, which aided a late-session rebound. According to him, the auto sector’s continued strength came from expectations of a demand revival, and this momentum helped steady the broader market. In fact, mid-cap and small-cap stocks outperformed, suggesting that domestic investors were actively rotating money into value and growth opportunities outside of the large-cap universe.
On the list of top gainers, Mahindra & Mahindra surged by 2.34%, leading the charge in the auto pack, followed by Maruti Suzuki with a rise of 1.70%. Other notable performers included Power Grid, climbing 1.21%, Reliance Industries, advancing 1.11%, and Bharti Airtel up by 0.84%. These gains provided the much-needed cushion for the benchmarks. On the other hand, IT shares struggled. ITC recorded the sharpest decline of 2.01%, while HCL Technologies fell 1.55%, TCS dropped 1.53%, Tech Mahindra slid 1.43%, and Infosys was lower by 1.29%.
Providing a global perspective, Ross Maxwell, Global Strategy Lead at VT Markets, pointed out that Indian equities have underperformed compared to their Asian peers due to a combination of external and internal pressures. He highlighted that foreign portfolio investors have been consistent net sellers in 2025, with financials seeing record outflows. Many overseas funds are diverting allocations to markets like Taiwan, South Korea, and China, where valuations appear cheaper and exposure to high-growth sectors such as artificial intelligence is stronger—an opportunity Indian equities are currently missing.
Maxwell further explained that while the GST 2.0 reforms initially triggered a market rally, much of that optimism faded quickly due to profit booking. In addition, weak urban consumption and cautious corporate sentiment have weighed on investor confidence. Nevertheless, he maintained that India’s solid macroeconomic fundamentals still hold potential. He believes that once valuations cool down and earnings growth picks up, there is room for a medium-term recovery, underscoring the long-term growth story of the Indian market despite short-term challenges.
