Sensex, Nifty extend rally as GST 2.0 sparks buying momentum; auto stocks in fast lane

Dalal Street rallies as GST 2.0 optimism lifts auto and midcap stocks

Indian benchmark indices Sensex and Nifty extended their gains for a second consecutive session on September 5, buoyed by optimism around GST 2.0 reforms. The positive sentiment on Dalal Street suggested that Nifty is on track to post weekly gains of over one percent, snapping the lull seen last week.

Around morning, the Sensex was trading 204.26 points, or 0.25 percent higher, at 80,922.27, while the Nifty added 63.30 points, or 0.26 percent, to 24,797.60. Market breadth was largely positive, with 1,442 shares advancing against 1,238 declining and 128 remaining unchanged.

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All sectors opened on a firm footing, with the Nifty Auto index leading the gains. Stocks such as Maruti Suzuki, M&M, Tata Motors, Bajaj Auto, and Hyundai Motor India contributed significantly to the rally. Meanwhile, India VIX, the key gauge of short-term market volatility, eased by one percent, reflecting growing stability in the markets.

Broader markets also performed well, with midcap and smallcap indices outpacing the frontline indices, signaling healthy participation beyond large-cap stocks.

Shrikant Chouhan, Head of Equity Research at Kotak Securities, said, “We believe the short-term market outlook remains positive; however, a fresh bullish trend is likely only after crossing 24,850 for Nifty or 81,000 for Sensex. If these levels are breached, the market could move toward 25,000/81,500. On the downside, 24,650/80,500 and 24,700/80,700 are key support zones for day traders. A drop below 24,580/80,300 may weaken the current uptrend.”

Mandar Bhojane, Senior Technical and Derivative Analyst at Choice Broking, added, “The market is showing resilience within a consolidation range. With improving technical momentum and steady domestic inflows, the near-term bias remains positive. Traders should adopt a buy-on-dips strategy and focus on stock-specific opportunities in leadership sectors like banking, IT, and auto.”

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