Sensex holds firm, Nifty above 24,800; auto stocks in fast lane on sharp price cuts

Sensex, Nifty hold firm on auto, metal gains

Indian benchmark indices Sensex and Nifty traded on a firm footing during the afternoon session on September 8, lifted by strong gains in auto and metal stocks. India VIX hovered comfortably below the 11 mark, suggesting no immediate signs of panic in the near term.

Around noon, the Sensex was higher by over 200 points at 80,963, while the Nifty advanced 90 points to trade above the 24,831 mark. Market breadth remained positive with 2,413 stocks advancing, 1,648 declining, and 196 unchanged.

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Going forward, investors will closely watch inflation data from both India and the US, which will provide cues on the US Federal Reserve’s monetary stance. In its previous meeting, Fed Chair Jerome Powell had hinted at a 25 basis points rate cut, while the latest weaker-than-expected US jobs report further strengthened expectations of a cut when the Fed meets next week.

On the sectoral front, Nifty Auto emerged as the day’s top performer, extending last week’s rally on September 8 noon deals. Gains in Maruti Suzuki, Mahindra & Mahindra, and Tata Motors led the charge as the Street cheered steep reductions in car prices ranging from Rs 65,000 to Rs 7.8 lakh.

The Nifty Metal index also gained traction, rising one percent in noon trade, supported by advances in JSW Steel, Tata Steel, and Jindal Steel. Sentiment was aided by Morgan Stanley’s constructive view on Indian steel, where it sees spread expansion and firm domestic demand. The brokerage has an “overweight” rating on JSW Steel and Tata Steel, while maintaining “equal-weight” on SAIL and Jindal Steel Power.

Meanwhile, analysts at ICICI Securities noted that sustaining above 24,200 levels and closing above the upper band of 25,000 could fuel momentum towards 25,300. Failure to do so, however, may result in broader consolidation within the 25,000–24,200 range.

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