Indian equity indices closed Thursday’s session with modest gains after giving up most of the early rally triggered by sweeping GST reforms. The GST Council collapsed the four‑rate structure into two slabs (5 % and 18 %) and cut taxes on autos, FMCG products, cement and other items. This fuelled early buying in consumption‑oriented stocks. However, profit‑booking and weakness in PSU banks and technology shares caused benchmarks to finish barely higher. Foreign institutional investors remained net sellers, while domestic institutions continued to support the market.
Top indices
| Index / sector | Close | % change | Brief comment |
|---|---|---|---|
| Nifty 50 | 24 737 | +0.09 % | Broke above 24 700 but closed off the day’s high. |
| BSE Sensex | 80 718 | +0.19 % | Gains driven by autos and consumer stocks. |
| Nifty Bank | 54 200.75 | +0.25 % | Resilience in banking stocks; awaits a breakout above 54 100. |
| Nifty Midcap 100 | ~56 000 | –0.65 % | Broader indices saw profit‑booking. |
| Nifty Smallcap 100 | ~56 000 | –0.65 % | Smallcaps underperformed after recent rallies. |
| Nifty Auto | +0.80 % | Top‑performing sector; benefited from tax cuts on vehicles. | |
| Nifty FMCG | +0.23 % | Benefited from lower GST on essentials. | |
| Nifty Consumer Durables | +0.10 % | White‑goods names saw selective buying. | |
| Nifty PSU Bank | –1.11 % | Worst performer; profit‑taking. | |
| Nifty IT | –0.91 % | Global tech weakness weighed on IT majors. | |
| Nifty Oil & Gas | –0.94 % | Declined along with crude‑oil‑linked names. |
Key statistics for Nifty 50
- Close: 24 737
- Previous close: ~24 715 (gained ~22 points)
- 52‑week range: approx. 21 744 – 26 277 (index is ~6 % below its 52‑week high).
- Price‑earnings ratio: ~21.8 (slightly above long‑term average, signalling rich valuations).
- Price‑to‑book: ~3.4
- Dividend yield: ~1.37 %
Top gainers and losers
| Gainers | Price (₹) | % change | Driver |
|---|---|---|---|
| Mahindra & Mahindra | 3 494.30 | +6.34 % | GST cuts on SUVs and tractors expected to boost demand. |
| Bajaj Finance | 941 | +4.99 % | Anticipated rise in consumer lending after tax reforms. |
| Trent | 5 613.50 | +2.45 % | Consumption theme; strong retail outlook. |
| DOMS Industries (broader market) | 2 689 | +7.4 % | Zero GST on stationery items. |
| Bata India | — | +7 % (approx.) | Lower GST on footwear priced below ₹2 500. |
| Losers | Price (₹) | % change | Driver |
|---|---|---|---|
| Tata Consumer Products | 1 077.90 | –2.40 % | Profit‑taking after recent rally. |
| ONGC | — | –0.93 % | Decline in oil & gas counters. |
| IndusInd Bank | — | –0.92 % | Selling pressure in banking stocks. |
| Delta Corp (broader) | — | –7 % | GST on casino admissions hiked to 40 %. |
| Solar Industries | 13 910.45 | –2.68 % | Explosion at Nagpur facility raised safety concerns. |
| Ola Electric, Paytm, Shree Renuka Sugars | — | –3 % to –5.6 % | Profit‑booking after recent rallies. |
What moved the market?
- GST reforms: The GST Council’s move to compress tax rates into two slabs and cut levies on cars, FMCG products, cement, insurance and other goods sparked early enthusiasm. Auto, consumption and cement stocks rallied on expectations of a festive‑season demand boom.
- Sector rotation: Investors rotated into consumer‑oriented names and away from PSU banks, oil & gas and technology counters. IT shares lagged due to global demand concerns, while PSU banks faced profit‑booking.
- Institutional flows: Foreign investors continued to sell (net outflow of about ₹1 666 crore), but domestic institutions bought roughly ₹2 495 crore, providing support.
- Valuations: With benchmarks near record highs and Nifty valuations above the long‑term average, traders booked profits, especially in midcaps and smallcaps.
- Corporate events: An explosion at Solar Industries’ Nagpur plant pressured the stock; Delta Corp tumbled after a higher GST on casinos. Netweb Technologies jumped on a large AI server order; Yes Bank saw interest after regulators cleared Sumitomo Mitsui Banking Corp’s plan to raise its stake up to 24.99%. SpiceJet announced an interline agreement with Gulf Air.
- Global factors: Overnight gains in U.S. tech stocks and mixed Asian markets set a supportive backdrop, but persistent weakness in Chinese indices and rising global bond yields tempered sentiment.
Global cues
- U.S. markets: The S&P 500 and Nasdaq Composite rose around 0.5 % and 1.03 %, respectively, propelled by tech stocks. The Dow Jones dipped slightly. The U.S. 30‑year Treasury yield pushed above 5 %, highlighting pressure in global bond markets.
- Asian markets: Japan’s Nikkei 225 and South Korea’s Kospi gained, while Shanghai and Shenzhen indices fell sharply and Hong Kong’s Hang Seng retreated. Mixed Asian sentiment weighed on Indian IT and metals stocks.
- Commodities: Gold hit a record high above US$3 578 per ounce on expectations of a Federal Reserve rate cut. Oil prices declined ahead of the OPEC+ meeting, with Brent around US$67.33 a barrel. A softer U.S. dollar provided some support for commodities.
Stocks to watch
- Mahindra & Mahindra, Bajaj Auto, Tata Motors: Likely to stay strong as lower GST spurs auto demand.
- Bajaj Finance, HDFC Bank: Beneficiaries of expected upturn in consumer lending; monitor credit growth.
- Trent, Bata India, Dabur, Emami: Consumption plays that may continue to gain in the run‑up to the festive season.
- Netweb Technologies: Won a ₹1 734‑crore order to supply AI servers; watch for follow‑up orders.
- Yes Bank: Regulatory approval for SMBC to raise its stake may draw investor attention.
- Solar Industries: Watch for further disclosures after the plant accident; stock may remain volatile.
- SpiceJet: The Gulf Air interline pact could improve load factors; any improvement in financial metrics would be positive.
- Delta Corp: Elevated GST on casino admissions has dampened sentiment; stock may remain under pressure.
Corporate updates
- GST Council reforms: Two‑tier rate structure (5 % and 18 %) implemented; special 40 % rate retained for sin/luxury goods.
- FIIs vs DIIs: FIIs sold about ₹1 666 crore while DIIs bought ₹2 495 crore of equities on 3 September.
- Solar Industries: Reported a fatal explosion at its Nagpur plant; production halted in the affected unit.
- SpiceJet: Signed an interline agreement with Gulf Air to enhance connectivity to the Middle East.
- Yes Bank: Competition Commission of India cleared Sumitomo Mitsui Banking Corp’s plan to increase its stake up to 24.99 %.
- Netweb Technologies: Secured a ₹1 734‑crore order to build AI servers for a sovereign AI initiative.
Technical levels and outlook for Friday (5 Sept 2025)
- Nifty 50: An inside‑bar pattern suggests consolidation. Traders expect the index to target 24 900 and 25 050 if it sustains above 24 800; momentum will likely accelerate once 24 800 is crossed. Immediate support lies around 24 400, with stronger support at 24 200–24 000 (near the 200‑day moving average).
- Bank Nifty: Support near 53 500; resistance at 54 100. A breakout above 54 100 could trigger short covering toward 55 000; a breach of 53 500 may invite further downside.
- Support sectors: Autos, FMCG, cement, consumer durables and NBFCs look attractive on dips given tax cuts and strong domestic demand prospects.
- Expected tone: Gift Nifty futures trading at a premium suggest a positive start, but extended valuations and mixed global cues could keep the broader market range‑bound. Traders may adopt a “buy‑on‑dips” strategy in consumption‑linked sectors while remaining cautious on IT and PSU banks. Key catalysts to watch include the U.S. jobs report, the OPEC+ meeting, bond yields and any follow‑through announcements from the GST Council.
