Indian benchmark indices Sensex and Nifty are set for a weak opening on September 3, tracking downbeat global cues. At 7:25 am, the GIFT Nifty quoted 24,637, lower by 30 points or 0.12 percent, hinting at a bearish start for Dalal Street.
Yesterday, the market reversed after a strong opening, as profit-booking took over during Nifty’s first Tuesday expiry. The Sensex ended nearly 600 points below its intraday high, while the Nifty closed under 24,600. Sectoral trends were mixed: FMCG, metals, and PSU banks gained ground, whereas autos, pharma, and IT stocks faced selling pressure.
Attention now shifts to the GST Council meeting, which kicks off today. The council has proposed a new two-tiered tax structure of 5 percent and 8 percent by shifting products from the current 12 percent and 28 percent slabs. Additionally, a special 40 percent rate is under discussion for a limited set of items.
If implemented, these changes could prove a game-changer for consumption-led sectors. FMCG stocks have already logged three consecutive sessions of gains, buoyed by expectations of lower tax burdens and stronger pricing power.
Technically, the Nifty 50 faces immediate resistance at 24,600, with support levels at 24,550 and 24,430. “Sustaining above 24,734 is critical for a bullish reversal, while rejection near 24,600 may trigger further downside,” noted Hariprasad K, SEBI-registered Research Analyst and Founder of Livelong Wealth.
Flows reflect the market’s push and pull: Foreign Institutional Investors (FIIs) net sold equities worth Rs 1,171.04 crore, while Domestic Institutional Investors (DIIs) provided support with net purchases of Rs 2,433.82 crore.
Global sentiment remains weak. Overnight, Wall Street began September on a soft note as US equities fell amid rising bond yields, fiscal concerns, and speculation over Federal Reserve policy. Investors await the crucial jobs report later this week for rate-cut signals. Meanwhile, gold prices climbed to fresh highs on safe-haven demand.
This morning, Asian markets followed Wall Street lower. Australia’s S&P/ASX 200 dropped 0.5 percent, Japan’s Nikkei 225 slipped 0.3 percent, and South Korea’s Kospi traded flat in early deals.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
