Stock Market Weekly Wrap: Sensex Gains 901 Points, Nifty Rises 314 Points; GST Cuts and Strong GDP Boost Sentiment

The Indian stock market ended the week on a positive note, supported by upbeat economic data and the Goods and Services Tax (GST) rate cuts. The Nifty 50 closed above 24,700, while the Sensex crossed 80,700. A strong 7.8 per cent GDP growth rate, coupled with higher Purchasing Managers’ Index (PMI) numbers, strengthened investor confidence. The government’s move to reduce GST on essential goods, two-wheelers, and education-related items also supported market sentiment.

Weekly Index Performance

In the week ended September 5, 2025, the Sensex advanced 901.11 points or 1.12 per cent to settle at 80,710.76, while the Nifty 50 gained 314.15 points or 1.28 per cent to 24,741. The BSE Mid-Cap index slipped 0.10 per cent to 45,459.77, and the BSE Small-Cap index inched up 0.09 per cent to 52,752.31.

The week saw mixed sessions:

• Monday: Sensex gained 554.84 points to 80,364.49, Nifty rose 198.20 points to 24,625.05.
• Tuesday: Sensex fell 206.61 points to 80,157.88, Nifty dropped 45.45 points to 24,579.60.
• Wednesday: Sensex advanced 409.83 points to 80,567.71, Nifty climbed 135.45 points to 24,715.05.
• Thursday: Sensex added 150.30 points to 80,718.01, Nifty gained 19.25 points to 24,734.30.
• Friday: Sensex dipped 7.25 points to 80,710.76, Nifty rose 6.70 points to 24,741.

Economy and GST Reforms

India’s economy expanded 7.8 per cent in the April–June quarter, the fastest in five quarters. Gross Value Added (GVA) increased 7.6 per cent, indicating strong underlying activity. The HSBC India Services PMI reached 62.9 in August, its highest since 2010, while the Composite PMI rose to 63.2, the sharpest expansion in over 17 years.

GST collections stood at Rs 1.86 trillion in August, up 6.5 per cent year-on-year. The GST Council announced sweeping reforms, introducing two main slabs of 5 per cent and 18 per cent, while retaining a 40 per cent slab for luxury and sin goods. GST on small cars and motorcycles up to 350cc was cut to 18 per cent from 28 per cent, while taxes on FMCG items, tractors, and school supplies were lowered. Premium motorcycles above 350cc now attract 40 per cent GST. Insurance policies were exempted, and educational items such as notebooks and stationery were moved to a nil or 5 per cent category.

Auto Sector Sales Update

Hero MotoCorp rose 5.40 per cent as August dispatches grew 8 per cent to 5.53 lakh units. Bajaj Auto gained 5.29 per cent after reporting a 5 per cent rise in sales to 4.17 lakh units. Maruti Suzuki slipped 0.60 per cent to 1.80 lakh units, while Force Motors fell 9.05 per cent despite 6.6 per cent domestic sales growth. SML Isuzu dropped 10.17 per cent on a 15 per cent decline in sales. VST Tillers Tractors reported a marginal 1.87 per cent rise to 4,499 units.

Stocks in Spotlight

One Mobikwik Systems surged 33.57 per cent after the Abu Dhabi Investment Authority (ADIA) exited through block deals worth Rs 39.21 crore. Adani Ports added 0.63 per cent, handling 41.9 MMT of cargo in August, up 16 per cent year-on-year. Lupin rose 2.27 per cent after securing USFDA approval for Risperidone extended-release injectable suspension. Puravankara dipped 0.27 per cent after announcing redevelopment rights for a premium Mumbai project worth Rs 2,700 crore.

Global Market Trends

In Europe, eurozone inflation inched up to 2.1 per cent in August, close to the ECB’s 2 per cent target. In Asia-Pacific, China’s manufacturing PMI remained weak at 49.4, though private survey data showed modest expansion at 50.5. Australia reported 1.8 per cent GDP growth in Q2, while Japan saw a 0.5 per cent increase in real wages. In the US, initial jobless claims rose to 237,000, and private hiring slowed, indicating softness in the labour market.

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