Sensex Recovers from Day’s Low, Nifty Back Above 24,700 on Auto, Global Support

Mumbai, September 5, 2025: The benchmark index of the stock market started in green on Friday, but tanked within an hour. However, despite a slow day with some significant losses, the indexes recovered in the afternoon. The recovery helped in erasing earlier losses as buying in auto stocks and firm global cues lifted sentiment.

Sensex Hits Intraday Low 80,321.19, Nifty Drops to 24,621.60

As of September 5, 2025, both indices had slipped into the red earlier in the day, with the Sensex hitting a low of 80,321.19 and the Nifty dropping to 24,621.60. However, by midday, the indexes had resurfaced and recovered their earlier losses. By the closing time, Nifty was trading in green at 24,741.00, up 6.70 points, a 0.03% increase, rebounding from its day’s low of 24,621.60. While Sensex closed in red at 80,710.76, down 7.25 points, the overall loss at the time of closing was 0.01%.

Global Cues and DII Buying Drive Market Rebound Despite FII Outflows

While the indices tanked due to profit booking and the exit of several FIIs, several factors pushed them into the green again. The first and major factor that drove the rebound was positive global cues. Asian markets traded higher across the board, which also had a positive impact on the Indian Stock Exchanges. Even the Wall Street futures pointed to further strength after overnight US gains. Further, the exits of FIIs, pulling out ₹106.34 crore on Thursday, were compensated by DIIs as they stepped up with strong buying of ₹2,233.09 crore, cushioning the market.

Brent Crude Eases 0.18% to USD 66.87, Auto Stocks Rally Continues

In other factors, the Brent crude futures eased 0.18% to USD 66.87 a barrel, improving investor sentiment on inflation concerns. The stock market also witnessed a rally in the shares of the automobile sector. The rally extended for a third straight session following the GST Council’s move to cut GST from 28% to 18% across key automobile categories. The relation was also evident in the Indian VIX as it slipped 0.16% to 10.84, reflecting reduced investor anxiety.

The intraday rebound by the two benchmark indexes highlights that sector-specific momentum and global cues are important and should always be tracked. Investors should closely watch auto stocks post-GST cuts and monitor crude price trends, as both factors can significantly influence near-term sentiment. Additionally, continued DII support versus FII flows will remain a critical indicator of market stability.

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