Markets on the Move: Sensex and Nifty Surge as GST Optimism Lifts Investor Mood

A Strong Start to September for Indian Markets

Markets on the Move: Sensex and Nifty Surge as GST Optimism Lifts Investor Mood – The Indian stock market opened September with a wave of optimism. On September 4, 2025, both the Sensex and Nifty 50 posted solid gains, driven by positive sentiment around the newly announced GST reforms, strong foreign inflows, and global market support. The Sensex rose by 409.83 points to close at 80,567.71, while the Nifty 50 gained 135.45 points, ending the day at 24,715.05.

This bullish momentum comes just days after Prime Minister Narendra Modi announced a simplified GST structure, reducing tax slabs to 5% and 18%. Investors are hopeful that lower taxes on consumer goods will boost demand and corporate earnings, especially in sectors like FMCG, automobiles, and electronics.

Mid-cap and small-cap stocks also performed well, showing strong participation from retail investors. Analysts believe this rally could continue if global cues remain stable and domestic reforms stay on track.

Sector Highlights: FMCG, Metals, and Auto Lead the Charge

Several sectors stood out in today’s trading session:

• FMCG Stocks: Companies like Dabur and Hindustan Unilever saw strong buying interest. Dabur, in particular, broke out of a bullish chart pattern and is expected to rally further.
• Metal Stocks: Tata Steel and JSW Steel led the metal pack, benefiting from global price recovery and domestic infrastructure demand.
• Automobile Stocks: Bajaj Auto hit a 7-month high, supported by strong technical indicators and investor confidence in the EV segment.
• Energy & Battery Stocks: Amara Raja Energy & Mobility surged after breaking out of a consolidation phase, with analysts predicting a 10–15% upside.

Meanwhile, Bank Nifty showed mixed signals. Although it closed higher at 54,067.55, technical charts suggest caution due to a bearish pattern of lower highs and lower lows.

Technical Trends: Nifty Eyes 25,000, But Resistance Remains

From a technical perspective, the Nifty 50 is showing signs of strength but faces key resistance near the 24,800 – 25,000 zone. Analysts say a decisive move above this level could trigger a fresh rally toward 25,050, while support lies around 24,500.

The Sensex, too, is approaching a resistance zone at 80,700. A breakout above this could push it toward 81,000- 81,200, but traders are advised to watch for dips below 80,000, which could weaken the uptrend.

Momentum indicators are rising from oversold regions, suggesting that the market may continue to climb in the short term. However, intraday volatility remains a concern due to mixed global cues and cautious institutional activity.

What Investors Should Watch Next

Here are key factors that could influence the market in the coming days:

• GST Council Decisions: The ongoing GST Council meeting may bring more clarity on rate changes, especially for premium goods and services. Any positive announcements could further lift market sentiment.
• Global Trends: European markets are trading higher, but weak signals from Wall Street may limit aggressive buying in India.
• Foreign Investment: While Foreign Institutional Investors (FIIs) have been selling, Domestic Institutional Investors (DIIs) continue to buy, providing support to the market.
• Upcoming IPOs: Amanta Healthcare’s IPO allotment is underway, and its listing next week could attract fresh investor interest.

Top stock picks for the day include Dabur, Bajaj Auto, and Amara Raja Energy & Mobility, all showing strong technical setups and sectoral momentum.

Also read – Market Mood Swings: What’s Driving India’s Stock Market Today

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