After a choppy session, buying interest in metal stocks drove Dalal Street to rise over half a percent on Wednesday, September 3. Investors also awaited further details from the Goods and Services Tax (GST) Council meeting, which will drive near-term moves.
At close, the Sensex was up 409.83 points or 0.51 percent at 80,567.71, and the Nifty was up 135.45 points or 0.55 percent at 24,715.05. About 2,385 shares advanced, 1,356 shares declined, and 123 shares were unchanged.
The shares of metal companies jumped, with JSW Steel, Tata Steel, and Hindalco extending gains due to weaker dollar and China's aim to cut steel production between 2025 and 2026. The country's move aims to tackle overcapacity that has hit prices significantly. The metal index was the top sectoral gainer on the stock market.
On the sectoral front, Nifty Metal led the gains, climbing over 3 percent, while PSU Bank, Pharma, and Auto indices also advanced more than 0.7-1 percent. FMCG, Energy, Realty, and Infra edged higher with modest upticks. On the other hand, IT was under pressure, slipping nearly 0.8 percent, while Media remained flat.
"With global uncertainty on the rise, the market also is going to experience high volatility. There are potentially positive and negative news that can impact the market, going forward. On the negative front, the likelihood of the 25 percent penal tariff imposed on India being withdrawn, is difficult since India has refused to accept Trump’s dictates. This means, in the short-run our exports and related jobs will continue to suffer," said VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.
On the daily chart, Nifty continued its recovery momentum and is holding firmly above the 24,400 support zone. The index is consolidating within a broad range, indicating a healthy pause after recent gains. Immediate support is placed at 24,500, followed by 24,300.
"A break below these levels could trigger short-term profit booking. On the higher side, resistance is seen near 24,800, followed by the crucial 25,000 psychological mark. A decisive breakout above 25,000 could open the gates for a fresh leg of rally," said Mandar Bhojane, Sr Technical & Derivative analyst at Choice Broking.
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