Indian benchmark indices Sensex and Nifty opened on a subdued note on September 3, weighed down by weak global cues and caution ahead of the all-important GST Council meeting that is expected to shape near-term sentiment.
Around morning trade, the Sensex slipped 8.65 points or 0.01 percent to 80,149.23, while the Nifty was down 1.15 points or 0.00 percent at 24,578.45. Market breadth was positive with 1,743 shares advancing, 1,043 declining, and 154 remaining unchanged.
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Broader markets outperformed marginally, with small gains cushioning the weakness in frontline indices. The India VIX continued its cooling trend, hovering near the 11 mark, suggesting stability in market volatility.
Among sectors, Nifty Metal was the star performer, led by Tata Steel, JSW Steel, Coal India, and Hindustan Zinc. Bank Nifty and Nifty Auto also recorded modest gains. On the downside, Nifty IT saw fresh profit-booking, dragged lower by Infosys, LTIMindtree, Persistent Systems, and Coforge. TCS, however, capped some of the downside after securing a €550 million digital transformation deal with Tryg, spread across seven years.
In the stock-specific space, Eternal advanced in early trade as Zomato announced a 20 percent hike in platform fees to tap into surging demand during the festive season.
All eyes are now on the GST Council meeting, which will deliberate on a new two-tier tax structure of 5 percent and 8 percent by moving products from the existing 12 percent and 28 percent slabs. A special 40 percent rate on select items is also under discussion. If approved, the rejig could be a game-changer for consumption-heavy sectors. FMCG counters have already rallied for three straight sessions in anticipation of tax relief and stronger pricing power.
Technically, the Nifty is consolidating within a broad range after recent gains. “Immediate support lies at 24,500, followed by 24,300. A breach of these levels could trigger short-term profit-booking. On the upside, resistance is placed at 24,800, followed by the crucial 25,000 psychological mark,” said Mandar Bhojane, Senior Technical & Derivative Analyst – Research at Choice Equity Broking.
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