Top indices (2 Sept 2025 close)
| Index | Close | Chg (%) | Notes |
|---|---|---|---|
| Sensex | 80,157.88 | –0.26 % | Fell 206 points; surrendered early gains as financial stocks came under expiry‑related pressure. |
| Nifty 50 | 24,579.60 | –0.18 % | Slipped 45 points after hitting an intraday high of 24,756.10. |
| Nifty Midcap 100 | ~56,954 | +0.23 % | Broader markets outperformed; mid‑caps rose ~0.3 %. |
| Nifty Smallcap 100 | ~8,459 | +0.53 % | Small‑caps added ~0.5 %, showing relative strength. |
| Bank Nifty | 53,627.25 | –0.69 % | Weighed down by heavyweights like ICICI Bank and M&M; underperformed Nifty. |
| Nifty IT | 35,702 | –0.11 % | Information‑technology shares were subdued. |
Sectoral performance
| Sector | Avg. % change | Comments |
|---|---|---|
| Castings, Forgings & Fasteners | +4.54 % | Best‑performing basket; positive commentary on capital‑goods demand. |
| Cables | +2.10 % | Gains on robust order wins and power‑sector momentum. |
| Diamond, Gems & Jewellery | +1.53 % | Jewellery retailers rallied on festive‑season expectations. |
| Telecom | +1.17 % | Support from tariff‑hike hopes; Reliance’s AGM comments on AI/FMCG added sentiment. |
| Printing & Stationery | –2.37 % | Weakest group; profit‑taking ahead of GST Council meeting. |
| Capital Markets | –0.16 % | Mild profit‑booking. |
| Engineering Services | –0.14 % | Slightly lower; stock‑specific weakness in auto ancillaries. |
Market breadth was positive with roughly 2,729 advancing stocks versus 1,779 declines out of ~4,508 stocks traded.
Top gainers and losers (Nifty 50 constituents)
| Top gainers | Price (₹) | % chg | Volume (lacs) |
|---|---|---|---|
| Tata Consumer Products | 1,105.5 | +2.77 % | 16.5 |
| Nestlé India | 1,200.5 | +2.22 % | 17.7 |
| Power Grid Corp. | 286.0 | +2.20 % | 169.8 |
| NTPC | 336.7 | +1.80 % | 92.2 |
| Tata Steel | 158.5 | +1.46 % | 212.0 |
| Top losers | Price (₹) | % chg | Volume (lacs) |
|---|---|---|---|
| Dr Reddy’s Labs | 1,250.0 | –2.34 % | 16.3 |
| Mahindra & Mahindra | 3,238.0 | –2.33 % | 30.7 |
| ICICI Bank | 1,391.0 | –1.42 % | 71.6 |
| Asian Paints | 2,538.0 | –1.25 % | 26.1 |
| Cipla | 1,568.0 | –1.21 % | 11.6 |
What moved the market
- Expiry‑driven unwind in financials: Weekly index options expiry shifted to Tuesday from Thursday, triggering profit‑taking in banks and financial stocks. Financials slipped ~0.7 % after rising earlier.
- GST Council meeting: Investors were cautious ahead of the 3–4 Sept GST Council meeting. Expectations of GST cuts buoyed consumer stocks; FMCG players such as Nestlé India and Hindustan Unilever gained 1–4 %.
- Reliance AGM follow‑through: Reliance Industries rallied over 2 % as brokerages raised price targets after the AGM highlighted AI and FMCG as new growth engines; energy sector indices rose around 1 %.
- Auto dispatch updates: Tata Motors fell nearly 1 % after reporting a 7 % drop in August domestic passenger vehicle dispatches and following a proposal to hike GST on electric luxury cars from 5 % to 18 %. Mahindra & Mahindra dropped ~2.4 % on similar concerns.
- Sugar and ethanol play: Sugar producers (Balrampur Chini, Triveni Engineering, Shree Renuka, Dalmia Bharat Sugar) jumped after the government allowed unrestricted ethanol production from sugar‑cane byproducts from 2025‑26.
- Global cues: Asian markets were mixed; robust tech earnings lifted Hong Kong and China, but US‑China trade tensions and a proposed 50 % US tariff on Chinese imports kept global sentiment cautious. US markets were steady on hopes of a Fed rate cut, while European equities were range‑bound.
Global indices snapshot (approximate at Indian close)
| Index | Level | Chg (%) | Context |
|---|---|---|---|
| Dow Jones | ~35,150 | +0.25 % | US markets steady ahead of economic data. |
| S&P 500 | ~4,540 | +0.20 % | Investors assess Fed policy signals. |
| Nikkei 225 | 33,300 | +1.0 % | Gains from tech stocks and yen weakness. |
| Hang Seng | 18,450 | +1.9 % | Chinese tech giants rallied on stimulus hopes. |
| FTSE 100 | 7,600 | –0.36 % | UK markets edged lower on commodity weakness. |
Stocks to watch
- Reliance Industries: Follow‑through buying expected after brokerages upped price targets post‑AGM; AI and FMCG verticals flagged as future growth drivers.
- Tata Motors: Shares may remain under pressure because of weak PV dispatches and concerns over a potential GST hike on premium EVs.
- Sugar stocks (Balrampur Chini, Triveni Engineering, Shree Renuka, Dalmia Bharat Sugar): Momentum could continue following ethanol‑policy liberalisation.
- FMCG majors (Nestlé India, Hindustan Unilever, Dabur India, Emami): Beneficiaries if the GST Council reduces tax rates on personal‑care products; they gained 1–4 % today.
- Financials (ICICI Bank, HDFC Bank, Kotak Mahindra): Watch for expiry unwinding to stabilise; Bank Nifty remains the weak link.
- Auto names (M&M, Hero MotoCorp): Dispatch data and GST decisions on EVs/hybrid cars will drive sentiment.
Corporate updates
- Reliance AGM: Chairman Mukesh Ambani highlighted artificial intelligence and consumer goods as new growth engines; multiple brokerages issued bullish calls with target prices in the ₹1,600–1,733 range.
- Tata Motors: Reported a 7 % drop in domestic PV dispatches for August; total dispatches down 2 % YoY but commercial vehicle sales up 6 %. A panel suggested raising GST on electric vehicles priced ₹2–4 million to 18 %.
- GST Council proposals: Considering reducing GST by up to 10 percentage points on ~175 items (shampoos, baby care, hybrid cars, consumer electronics). The meeting begins 3 Sept; consumer stocks rallied on hopes.
- Morgan Stanley on Reliance: Raised price target citing benefits from China’s push to cut excess capacity in energy and solar supply chains.
- Ethanol policy: Government allowed unrestricted ethanol production from sugarcane by‑products in 2025‑26, boosting sugar stocks.
Technical outlook and levels for 3 Sept 2025
| Index | Closing level | Key supports | Key resistances | Tone/strategy for next session |
|---|---|---|---|---|
| Nifty 50 | 24,579.60 | 24,450; 24,540 | 24,665; 24,720; 24,774; 24,828 | The index is in a tight consolidation zone. A move above 24,665 could target 24,800 +; sustained trade below 24,450 may drag towards 24,310–24,180. Use a trailing stop‑loss due to potential volatility around the GST Council meeting. |
| Bank Nifty | 53,627.25 | 53,200; 53,400; 53,550; 53,700 | 54,100; 54,255; 54,420; 54,600 | Bank Nifty is weaker than Nifty. Sustained trade above 54,255–54,420 can open the door to 54,600–54,855; failure to hold 53,700 could see a drift back to 53,200. Traders should stay nimble and avoid aggressive leverage unless 54,600 is decisively crossed. |
| India VIX | ~11.3 | — | — | Volatility gauge remains low (<12). Rising PCR alongside low VIX suggests complacency; sudden reversals are possible if supports break. |
Expected market tone for 3 September 2025
With major indices still near record territory but breadth positive, the market appears cautiously optimistic yet range‑bound. Financials could stabilise after expiry‑related selling; consumer and sugar stocks are expected to stay in favour ahead of the GST Council’s decisions. However, concerns over US tariff policy and ongoing FII selling may cap any sharp upside. Traders should watch 24,450 on Nifty and 53,700 on Bank Nifty for support; breaks below these levels may trigger profit‑booking. Overall tone: neutral with a slight bullish bias, but volatility could rise around policy announcements.
