The Indian equity markets closed with modest declines on September 2, 2025, despite opening on a positive note. Both benchmark indices surrendered early gains amid expiry-related volatility and sectoral weakness, particularly in banking and pharma stocks.
Index Performance
BSE Sensex closed at 80,157.88, down 206.61 points (-0.26%)
NSE Nifty 50 ended at 24,579.60, declining 45.45 points (-0.18%)
The indices had opened higher, with Nifty touching an intraday high of 24,756.10 before reversing course and falling to as low as 24,522 during the session.
Key Market Drivers
Tuesday Expiry Volatility: This marked the first Tuesday weekly expiry for Nifty options (shifted from Thursday), creating significant volatility throughout the session. Put options that were trading at ₹1 shot up to ₹50 during the sharp afternoon sell-off.
GST Council Meeting Anticipation: Investors remained cautious ahead of the two-day 56th GST Council meeting beginning September 3, where major GST rate revisions are expected. The council is likely to reduce GST rates on 175+ products including shampoos, hybrid cars, and consumer electronics.
Banking Sector Weakness: Bank Nifty underperformed significantly, falling 0.69% to 53,627.25. The banking index has declined over 4,000 points (8%) from its recent high of 57,600.
Sectoral Performance
Top Performing Sectors
-
FMCG: Led gains with over 1% rise, driven by GST cut expectations
-
Energy: Up ~1% for the second consecutive session, led by Torrent Power
-
Metal: Advanced for second session with NMDC as top gainer
-
Realty: Rose for second session, led by Godrej Properties
-
PSU Banks: Closed higher, led by Indian Overseas Bank and Punjab & Sind Bank
Underperforming Sectors
-
Auto: Top loser, dragged by M&M and Tata Motors amid GST hike buzz on EVs
-
Pharma: Fell for the 5th consecutive session, dragged by Dr. Reddy’s
-
Banking: Weighed down by heavyweights like ICICI Bank
Notable Stock Movements
Top Gainers (Nifty 50)
-
Tata Consumer Products: +2.77% at ₹1,105.50
-
Nestlé India: +2.22% at ₹1,200.50
-
Power Grid Corp: +2.20% at ₹286.00
-
NTPC: +1.80% at ₹336.65
-
Tata Steel: +1.46% at ₹158.45
Top Losers (Nifty 50)
-
Dr Reddy’s Labs: -2.34% at ₹1,250.00
-
Mahindra & Mahindra: -2.33% at ₹3,238.00
-
ICICI Bank: -1.42% at ₹1,390.90
-
Kotak Mahindra Bank: -1.20% at ₹1,944.90
-
Asian Paints: -1.25% at ₹2,538.00
Broader Market Performance
-
Mid-cap index: Advanced ~0.3%
-
Small-cap index: Gained over 0.6%
-
Market breadth: Positive with 1,927 advancing stocks vs 1,116 declines
Institutional Activity
Foreign Portfolio Investors (FPIs): Continued selling for the 6th consecutive session, offloading ₹1,159.48 crore worth of equities
Domestic Institutional Investors (DIIs): Remained net buyers with purchases worth ₹2,549.51 crore.
Global and Currency Markets
-
USD/INR: Traded at around 88.20, near record lows
-
India VIX: Remained low at ~11.3, indicating subdued volatility expectations
-
Asian markets: Mixed performance with Nikkei up 104 points while CSI 300 fell 43 points
Most Active Contracts As on 02-Sep-2025 15:30 IST (*** https://www.nseindia.com/)
| CONTRACT | LTP | CHNG | %CHNG |
|---|---|---|---|
| NIFTY 02SEP25 24600 CE | 0.05 | -75.90 | -99.93 |
| NIFTY 02SEP25 24700 CE | 0.05 | -28.00 | -99.82 |
| NIFTY 02SEP25 24750 CE | 0.05 | -15.85 | -99.69 |
| NIFTY 02SEP25 24650 CE | 0.05 | -46.70 | -99.89 |
| NIFTY 02SEP25 24800 CE | 0.05 | -8.65 | -99.43 |
| CONTRACT | LTP | CHNG | %CHNG |
|---|---|---|---|
| NIFTY 02SEP25 24550 PE | 0.05 | -25.50 | -99.80 |
| NIFTY 02SEP25 24600 PE | 20.35 | -18.50 | -47.62 |
| NIFTY 02SEP25 24700 PE | 120.10 | 28.60 | 31.26 |
| NIFTY 02SEP25 24500 PE | 0.05 | -17.20 | -99.71 |
| NIFTY 02SEP25 24650 PE | 70.30 | 10.00 | 16.58 |
| CONTRACT | LTP | CHNG | %CHNG |
|---|---|---|---|
| NIFTY 02SEP25 24600 CE | 0.05 | -75.90 | -99.93 |
| NIFTY 02SEP25 24550 PE | 0.05 | -25.50 | -99.80 |
| NIFTY 02SEP25 24600 PE | 20.35 | -18.50 | -47.62 |
| NIFTY 02SEP25 24700 CE | 0.05 | -28.00 | -99.82 |
| NIFTY 02SEP25 24750 CE | 0.05 | -15.85 | -99.69 |
Market Turnover As on 02-Sep-2025(***https://www.nseindia.com/)
| PRODUCTS | VOLUME(Shares/Contracts) | VALUE(₹ Crores) | OPEN INTEREST(Contracts) | UPDATED AT |
|---|---|---|---|---|
| Equity | 447.22 Cr | 93,244.72 | – | 16:00 |
| Equity Derivatives | 36.68 Cr | 1,62,773.24 | 1.94 Cr | 15:30 |
| Currency Derivatives | 2.23 L | 1,963.74 | 12.46 L | 17:00 |
| Interest Rate Derivatives | 131 | 2.57 | 33.83 K | 16:49 |
| Commodity Derivatives | 1.45 L | 150.08 | 3.94 K | 21:38 |
| Debt | – | 25,218.61 | – | 17:25 |
| Mutual Fund | – | 874.91 | – | 15:30 |
| Total | 483.93 Cr | 2,84,227.87 | 2.07 Cr |
Currency Snapshot As on 02-Sep-2025 17:00 IST (***https://www.nseindia.com/)
| CONTRACTS | LTP | %CHNG | VOLUME (Contracts) |
TURNOVER (₹ Crores) |
OPEN INTEREST |
|---|---|---|---|---|---|
| USDINR 26SEP25 FUT | 88.2600 | -0.0623 | 1,97,772 | 1,745.54 | 11,24,072 |
| USDINR 29OCT25 FUT | 88.3650 | -0.0989 | 8,326 | 73.57 | 41,813 |
| GBPINR 26SEP25 FUT | 118.2750 | -1.0292 | 6,769 | 80.06 | 22,710 |
| EURINR 26SEP25 FUT | 102.9000 | -0.8145 | 6,269 | 64.51 | 32,520 |
| USDINR 26SEP25 88 CE | 0.3600 | -28.0000 | 740 | 0.03 | 7,713 |
Outlook and Key Events
The market remains in a cautious consolidation phase with technical support for Nifty at 24,450-24,540 and resistance at 24,665-24,720. The outcome of the GST Council meeting starting September 3 will be crucial for near-term market direction, with expectations of significant rate cuts that could boost consumption-linked sectors. Additionally, the RBI’s monetary policy committee meeting on September 29 could bring further policy support.
The shift to Tuesday weekly expiries has introduced a new dynamic to options trading, with heightened volatility expected around these dates. Despite the day’s decline, the broader market structure remains resilient with mid-cap and small-cap indices continuing their outperformance.
