Indian benchmark indices, Sensex and Nifty, continued to trade in positive territory on September 4 but fell short of the day’s highs in the afternoon session as profit-booking emerged following the GST relief announcements. India VIX recorded a minor uptick, signaling a slightly volatile mood, coinciding with the first Thursday expiry of BSE Sensex derivatives contracts.
Around noon, the Sensex was up 387.86 points, or 0.48 percent, at 80,955.57, while the Nifty rose 103.15 points, or 0.42 percent, to 24,818.20. On the broader market front, about 1,856 shares advanced, 1,732 shares declined, and 140 shares remained unchanged.
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Despite the benchmark gains, broader markets slipped into negative territory, with both midcap and smallcap indices posting minor declines. The Nifty Auto index, which had been the top-performing sector, saw some pullback from the day’s high, rising just 1 percent during noon trades. Similar corrections were observed in the FMCG and Consumer Durables indices.
On the other hand, Nifty Pharma and Nifty IT were the worst-performing sectors, declining up to 0.4 percent during intraday deals.
Nitin Rao, CEO of InCred Wealth, said, “The GST cuts have been announced quickly and efficiently, with an element of urgency, to boost demand ahead of the festive season. The focus has been to support tariff-impacted, labour-intensive industries, reduce costs of goods (with visible benefits for middle-class consumers in mid-level value purchases), and improve sentiments following tariff issues and the general slowdown.”
He added, “History has shown that such measures contribute significantly to GDP growth, and a repeat impact is expected this time as well.”
Motilal Oswal analysts noted that GST 2.0, being the first major structural reform of the government’s current term, is expected to elicit a positive market response.
With current valuations around 20.8 times, in line with historical averages, and the prospect of double-digit earnings growth for Nifty (projected PAT growth of 10–12 percent), there is ample room for a potential market re-rating, analysts feel.
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