Indian Markets Edge Higher: Nifty Up 0.15%, Sensex Gains 0.17% Ahead of GST Council Meet

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.

There are no stocks banned for trading in the F&O segment today

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