Sensex, Nifty set to extend gains to second day - Key levels to track on September 5

Dalal Street looks to ride GST 2.0 optimism

Indian benchmark indices Sensex and Nifty are poised to kick off another session on a positive footing, with optimism from the GST 2.0 reforms continuing to fuel buying interest on Dalal Street. At 7:40 am, GIFT Nifty was trading at 24,885, up 59 points or 0.24 percent.

Yesterday, the initial euphoria around the Goods and Services Tax (GST) reform faded during the latter part of the trading day, leading benchmark indices Nifty 50 and Sensex to surrender a large part of their early gains. By the close, the Sensex managed to hold a modest rise of 150.30 points or 0.19 percent at 80,718.01, while the Nifty settled just 19.25 points or 0.08 percent higher at 24,734.30.

Foreign Institutional Investors (FIIs) remained marginal net sellers, pulling out Rs 106 crore—a relatively lighter figure compared to the outflows seen in recent sessions. Domestic Institutional Investors (DIIs), on the other hand, extended their robust buying streak, pumping in Rs 2,233 crore, thereby cushioning the market.

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Looking ahead, GST-driven rate cuts are expected to keep FMCG, auto, and insurance counters in the spotlight, as these sectors benefit directly from lower taxes and consumer-friendly pricing. Conversely, stocks exposed to higher sin taxes, such as Delta Corp, Nazara Technologies, and Varun Beverages, may face sustained selling pressure, noted Hariprasad K, SEBI-registered research analyst and Founder of Livelong Wealth.

He added, “A sustained move above 24,900 could propel the index toward the 25,200–25,400 zone. On the downside, the 24,400–24,450 range is a key support area, with a breakdown potentially dragging the index further down to 24,200–24,000. With India VIX cooling below 11, volatility remains subdued, keeping sentiment largely stable.”

Global cues continue to provide tailwinds. Overnight, Wall Street’s three key benchmarks closed higher amid optimism that the upcoming U.S. jobs report will reinforce the likelihood of a Federal Reserve rate cut. The broad-based S&P 500 climbed 0.83 percent to notch its 21st record close of the year, while the Nasdaq Composite advanced 0.98 percent.

The positive mood spilled over into Asian trading this morning. U.S. President Donald Trump signed an executive order on Thursday, formalizing a reduction in Japanese auto import tariffs to 15 percent from the earlier 27.5 percent. Japan’s Nikkei 225 rallied 1.39 percent, South Korea’s Kospi gained 0.26 percent, and the Kosdaq was up 0.35 percent. Australia’s S&P/ASX 200 also joined the uptrend with a 0.58 percent rise.

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