Nifty and Sensex End Over 0.5% Higher; Nifty Metal Index Leads Gains

Market Update at 4:00 PM: On Wednesday, September 3, Indian equity benchmark indices opened on a positive note but witnessed volatility in the first hour of the session. Thereafter, markets recovered steadily, led by Large-Cap stocks, and the Nifty 50 closed higher by 135.45 points, or 0.55 per cent, at 24,715.05. The Sensex advanced 409.83 points, or 0.51 per cent, to settle at 80,567.71. The rally was supported by Tata Steel and HDFC Bank, which emerged as major pullers for the index.

Investors remained watchful ahead of the GST Council meeting, where decisions on tax revisions across multiple goods are expected. However, IT stocks came under pressure, declining 0.74 per cent as weak US manufacturing data indicated contraction for the sixth straight month, coupled with rising US debt concerns./

Out of the 11 key sectoral indices, 9 ended in positive territory. Nifty Metal surged 3.11 per cent, recording its highest intraday gains in the past three months, with Tata Steel and Jindal Steel among the Top Gainers. On the contrary, Nifty IT ended lower, dragged by Infosys. Broader indices also closed in the green, with the Nifty Mid-Cap 100 up 0.65 per cent and the Nifty Small-Cap 100 up 0.89 per cent, reflecting strong momentum in small-cap and mid-cap counters often eyed for multibagger potential.

Netweb Technologies gained nearly 7 per cent after securing an order worth Rs 1,734 crore to supply servers based on NVIDIA’s Blackwell architecture, highlighting robust demand in the technology space. MOIL rose 3.86 per cent after reporting a 17 per cent year-on-year rise in production for August and a 26 per cent growth in sales, signaling strong Quarterly Results momentum. Construction firm PNC Infratech added 0.59 per cent after bagging a Rs 297 crore (USD 34 million) contract from the Airports Authority of India for Varanasi airport runway extension. Meanwhile, Indus Towers slipped 1.61 per cent following its international expansion plans. Vikran Engineering listed at a 3 per cent premium over its IPO price, adding to the list of recent IPO debuts in the market.

The market breadth remained strong, with 2,088 stocks advancing against 962 declines out of 3,138 traded. About 90 stocks touched fresh 52-week highs, while 42 hit new lows. Additionally, 123 stocks were locked in their upper circuits, compared to 57 in lower circuits. The key pullers for Nifty were HDFC Bank (+31.80 points), Tata Steel (+17.23 points), and Mahindra & Mahindra (+10.43 points). On the downside, Infosys (-14.86 points), Bharti Airtel (-2.65 points), and Tata Consultancy Services (-2.59 points) weighed on the index.

Market Update at 12:15 PM: Indian equity benchmark indices were trading on a cautious note on Wednesday, tracking weak cues from global markets and high anticipation ahead of the two-day Goods and Services Tax (GST) Council meeting, which kicks off today. The meeting is expected to address the rationalisation of the multiple-rate indirect tax regime, as announced by Prime Minister Narendra Modi on Independence Day.

At 12 PM, the BSE Sensex was up 32 points or 0.04 per cent at 80,188 levels, while the NSE Nifty 50 traded near the flat line at 24,632 levels. Among Sensex constituents, Infosys, Bajaj Finance, and Bharti Airtel were notable laggards. In contrast, Tata Steel gained 2 per cent. Other prominent gainers included Eternal, Bharat Electronics, Mahindra & Mahindra, and Power Grid Corporation.

The broader market outperformed the benchmark indices, with the BSE MidCap up 0.33 per cent and SmallCap rising 0.63 per cent. Several mid-cap and small-cap stocks are showing strong momentum, attracting investor attention.

On the sectoral front, all Nifty sectors traded higher except for Nifty IT. Nifty Metal surged 1.6 per cent, led by Welspun Corp, Lloyds Metals and Energy, Hindustan Copper, National Aluminium, Jindal Steel, Tata Steel, and JSW Steel. Nifty PSU Bank, Pharma, Energy, Healthcare, Consumer Durables, and Oil & Gas indices rose up to 1 per cent, reflecting broad-based participation across large-cap and mid-cap stocks.

Market Update at 10:00 AM: Indian equity markets opened on a positive note on Wednesday, supported by gains in auto and consumer stocks, as investors looked ahead to the Goods and Services Tax (GST) Council meeting. The meeting is expected to deliberate on tax cuts across a range of goods, which could provide a boost to consumption-driven sectors.

The NSE Nifty 50 index rose 0.15 per cent to 24,616.50, while the BSE Sensex added 0.17 per cent to 80,295.99 as of 9:15 a.m. IST. Market sentiment remained firm as twelve of the sixteen major sectoral indices registered advances.

Auto stocks, tracked by the Nifty Auto index, gained 0.5 per cent, reflecting optimism that potential tax reductions could spur sales across the sector. Consumer shares also moved higher, with the Nifty FMCG index up 0.3 per cent ahead of the outcome of the council meeting.

Meanwhile, broader market indices extended their strength. Small-cap stocks, represented by the Nifty Smallcap index, gained about 0.2 per cent, while mid-cap shares, tracked by the Nifty Midcap index, also added 0.2 per cent. Market participants noted that investor interest continues to remain strong in small-cap and mid-cap segments, often seen as potential multibagger opportunities during favourable policy cycles.

Pre-Market Update at 7:45 AM: On Wednesday, September 3, Indian equity benchmark indices Sensex and Nifty 50 are expected to open lower, tracking weak global market cues. As of 7:10 AM, the GIFT Nifty was trading at 24,610, down 49 points. Asian markets also declined, while US equities ended with losses as rising global bond yields weighed on investor sentiment. Market participants will closely watch the GST Council meeting today, which could guide near-term direction.

On Tuesday, September 2, Foreign Institutional Investors (FIIs) were net sellers, offloading equities worth Rs 1,159.48 crore. In contrast, Domestic Institutional Investors (DIIs) were net buyers, purchasing shares worth Rs 2,549.51 crore. The continued divergence in FII and DII activity remains a key driver for market movement.

The Nifty 50 closed at 24,579.60, slipping 0.18 per cent, reflecting consolidation. The Bank Nifty underperformed with a sharper decline of 0.63 per cent, ending at 53,661. Sector-wise, auto and pharma stocks lagged, while FMCG, metals, and realty stocks provided some support. Broader markets outperformed slightly, with small-cap and mid-cap indices advancing between 0.27 per cent and 0.53 per cent.

On Tuesday, US markets closed sharply lower as investors assessed tariff risks after a federal appeals court ruling. The Dow Jones Industrial Average fell 249.07 points (0.55 per cent) to 45,295.81. The S&P 500 dropped 44.72 points (0.69 per cent) to 6,415.54, while the Nasdaq Composite slipped 175.92 points (0.82 per cent) to 21,279.63. US President Donald Trump reiterated his stance on tariffs, ruling out any reduction on India. He acknowledged cordial relations with New Delhi but pointed to an “unequal trade balance” due to India’s higher duties.

The US manufacturing sector contracted for the sixth straight month in August, though the ISM PMI improved slightly to 48.7 compared to 48.0 in July. In Japan, services PMI slowed to 53.1 from 53.6, though it remained in expansion territory. Bond yields continued their upward move, with the US 30-year Treasury yield rising 5.1 basis points to 4.96 per cent and the 10-year yield climbing 4.5 basis points to 4.27 per cent.

Gold prices extended their rally amid expectations of a US Federal Reserve rate cut in September. Spot gold gained 0.2 per cent to USD 3,540.64 per ounce. The US dollar index rose 0.66 per cent to 98.44, while the euro, pound, and yen weakened slightly. Oil prices remained steady, supported by supply concerns from sanctions. Brent crude held at USD 69.14 per barrel, while US WTI edged up 0.06 per cent to USD 65.63.

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Disclaimer: The article is for informational purposes only and not investment advice.