BUSINESS DESK: GST HOPES: Stock Market Closes with Gains
Market Performance Overview
Domestic equity indices concluded Thursday’s session with tempered gains, unable to sustain early optimism sparked by Goods and Services Tax (GST) reform announcements.
The S&P BSE Sensex advanced 150.30 points, a 0.19% increase, closing at 80,718.01. The NSE Nifty50 rose 34.60 points, or 0.14%, settling at 24,749.65, reflecting cautious investor sentiment.
Intraday Volatility
The Sensex commenced trading with a robust 700-point surge, reaching 81,456.67, driven by positive reactions to GST restructuring.
However, profit-taking eroded most gains, with the index dipping to an intraday low of 80,608. The Nifty mirrored this trend, struggling to maintain momentum amid heightened volatility.
GST Reform Impact
The GST Council’s recent overhaul, effective September 22, 2025, included tax exemptions for life and health insurance premiums and reduced rates for automobiles and consumer durables.
Despite initial market enthusiasm, concerns over potential revenue shortfalls and fiscal implications prompted investors to lock in profits, tempering the rally.
Sectoral Dynamics
Automobile and consumer durable stocks initially led gains, buoyed by GST rate cuts from 28% to 18% for vehicles and related components.
However, sectors like IT and pharmaceuticals faced selling pressure, contributing to the indices’ subdued performance. Broader markets showed resilience, with mid-cap and small-cap indices outperforming benchmarks.
Currency Market Trends
The Indian rupee depreciated by 14 paise, closing at 88.16 against the U.S. dollar, influenced by foreign fund outflows and global tariff uncertainties.
This weakening, coupled with a softer dollar index, added complexity to market dynamics, impacting export-oriented sectors like IT.
Investor Sentiment and Outlook
Market sentiment remains contingent on the GST Council’s ongoing deliberations and their long-term fiscal impact.
Analysts suggest a potential Nifty resistance at 24,770, with support at 24,650, indicating a cautious near-term outlook. Investors are advised to monitor.