Nifty 50 and Sensex End Higher; Nifty Auto Emerges as Top Gainer with 0.85% Rise

Market Update at 4:05 PM: On Thursday, September 4, Indian equity benchmarks closed in positive territory, extending their previous day’s gains despite sharp intraday volatility. The Nifty 50 opened with a gap-up but soon slipped over 259 points to the day’s low before recovering strongly in the last hour of trade. At the close, the Nifty 50 gained 19.25 points, or 0.08 per cent, to settle at 24,734.30, while the Sensex rose by 150.30 points, or 0.19 per cent, to 80,718.01.

Gains in the Nifty 50 were driven by Large-Cap stocks such as Mahindra & Mahindra and HDFC Bank. Sectorally, financials, auto, and FMCG stocks led the rally after the GST Council approved a two-tier tax structure, lowering levies on essential goods to boost local demand and offset the impact of steep U.S. tariffs. The Nifty Financial Services index advanced 0.47 per cent, while the Nifty Auto gained 0.85 per cent and the Nifty FMCG rose 0.24 per cent. However, the Nifty IT index slipped 0.94 per cent, marking its third consecutive session of losses.

Nifty Auto emerged as the top sectoral performer, surging 0.85 per cent and extending its rally for the second straight day. Mahindra & Mahindra shares surged 6 per cent to hit an all-time high after tax rates on automobiles were slashed, while TVS Motors also gained significantly. This momentum lifted auto stocks, which have been among key drivers for recent market gains.

The biggest contributors to the Nifty’s upside were Mahindra & Mahindra (+37.82 points), HDFC Bank (+21.87 points), and Bajaj Finance (+21.55 points). On the downside, the index was dragged by Reliance Industries (-20.18 points), Infosys (-13.99 points), and Maruti Suzuki (-7.15 points).

Unlike the benchmarks, broader markets ended in the red. The Nifty Mid-Cap 100 fell 0.67 per cent, while the Nifty Small-Cap 100 declined 0.71 per cent, snapping a two-day winning streak. Investors in small-cap and mid-cap stocks faced selling pressure despite the rally in large-cap counters.

The market breadth was in favour of advancing stocks. Out of 3,141 stocks traded on the NSE, 1,226 advanced, 1,818 declined, and 97 remained unchanged. A total of 96 stocks hit their 52-week highs, while 36 touched their 52-week lows. Additionally, 105 stocks were locked in their upper circuits, whereas 50 were stuck in lower circuits. Such data highlights both opportunities and risks for investors tracking potential multibagger stocks, dividend announcements, Quarterly Results, or upcoming IPO-related buzz.

Footwear retailer Bata India gained 7.15 per cent, emerging as the top gainer on the index. Mahindra & Mahindra’s sharp rally of 6 per cent following GST relief in the automobile sector was a notable trigger. Market experts believe that GST 2.0 reforms may spark a fresh market cycle, lifting over 100 stocks across multiple sectors..

Market Update at 12:15 PM: Indian equity markets traded higher on Thursday as investors reacted positively to the major Goods and Services Tax (GST) reforms announced by Finance Minister Nirmala Sitharaman on Wednesday.

At 12 AM, the BSE Sensex was at 80,923, up 355 points or 0.4 per cent, while the NSE Nifty50 was at 24,796, higher by 81 points or 0.33 per cent. In the broader market, the Nifty MidCap index and the Nifty SmallCap index gained nearly 0.6 per cent each, indicating strength across segments.

The GST Council, in its September 3 meeting, approved a simplified two-slab tax structure by eliminating the 12 per cent and 28 per cent slabs. The move will reduce rates on several essential items while imposing higher levies on select sin and luxury products. Analysts believe this reform could have a long-term impact on consumer demand and sectoral performance, particularly in FMCG and auto stocks.

Among sectors, the Nifty Auto index led the rally with a 2.3 per cent rise, followed by FMCG at 1.7 per cent, Realty at 1.3 per cent, and Financial Services at 1 per cent. Individual gainers included Mahindra & Mahindra (M&M), which surged over 6 per cent, Eicher Motors up 2.35 per cent, Balkrishna Industries advancing 1.7 per cent, and Tata Motors climbing 1.57 per cent.

In the FMCG space, Britannia shares jumped 6.5 per cent, Dabur gained 3.8 per cent, Colgate Palmolive rose 3.25 per cent, and Emami added 3 per cent. Market experts note that FMCG companies could see improved margins and volumes due to lower tax rates on essential products.

Market Update at 10:30 AM: Indian shares opened higher on Thursday, rising more than 1 per cent, after the Goods and Services Tax (GST) Council announced a major tax reform aimed at reducing consumption taxes. The move comes as the country looks to cushion the impact of steep U.S. tariffs and support economic momentum.

At 9:15 a.m. IST, the NSE Nifty 50 was up 1.08 per cent at 24,980.75, while the BSE Sensex advanced 1.1 per cent to 81,456.67. The reform, which shifts the existing four GST slabs into a two-rate structure, will take effect from September 22. Everyday essentials will fall under lower tax brackets, potentially improving consumer spending power.

All 13 major sectoral indices recorded gains in early trade. The auto index surged 3.6 per cent, while consumer-focused stocks gained 2.7 per cent, providing strong support to the benchmarks. Analysts believe that such tax cuts could also influence the performance of small-cap and mid-cap companies in the consumer and auto space, while large-cap firms may benefit from stronger demand momentum.

Pre-Market Update at 7:45 AM: On Thursday, September 4, benchmark indices Sensex and Nifty 50 are expected to witness a gap-up opening after the Goods and Services Tax (GST) Council approved major reforms on Wednesday. The reforms include significant rate cuts on essential goods and some services, marking the biggest restructuring since GST was first introduced.

Finance Minister Nirmala Sitharaman announced that from September 22, 2025, a new goods and services tax regime will come into effect with three slabs — 5 per cent, 18 per cent, and 40 per cent. This reform will lead to GST rate reductions on 396 items, aimed at easing the cost burden on the common man. Market participants are also expecting this change to benefit consumption-oriented sectors, potentially driving demand for large-cap and mid-cap companies.

On Wednesday, September 3, Foreign Institutional Investors (FIIs) sold equities worth Rs 1,666.46 crore, while Domestic Institutional Investors (DIIs) turned net buyers, purchasing shares worth Rs 2,495.33 crore. These flows played a role in supporting market sentiment after the GST announcement.

Indian equities closed higher on Wednesday with strong participation across the board. The Sensex ended 410 points higher at 80,567.71, up 0.51 per cent, while the Nifty 50 added 135 points or 0.55 per cent to settle at 24,715.05. Broader markets also advanced, with the BSE Midcap index gaining 0.63 per cent and the Small-cap index rising 0.90 per cent.

Overnight in the U.S., the Nasdaq Composite advanced 1.03 per cent to 21,497.73, while the S&P 500 gained 0.51 per cent to close at 6,448.26. However, the Dow Jones Industrial Average slipped 0.05 per cent to 45,271.23. Higher U.S. bond yields continued to be in focus, with the 30-year Treasury yield crossing 5 per cent for the first time since July.

Gold prices held steady in Asian trade at USD 3,588.52/oz, supported by expectations of a Federal Reserve rate cut. The U.S. dollar index weakened by 0.2 per cent against major currencies. Meanwhile, crude oil extended losses, with WTI trading near USD 63 per barrel and Brent crude around USD 67 per barrel on concerns over OPEC+ supply increases.

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