Did Indian Indices Close Higher Despite Profit Booking and IT Stock Declines?

Mumbai, Sep 4 (NationPress) The domestic equity indices concluded the trading session slightly up on Thursday amidst fluctuations. The Sensex opened strong, soaring over 900 points due to positive sentiment around GST reforms. Nonetheless, profit booking and a downturn in IT stocks led to a significant loss of gains.

The Sensex settled at 80,718.01, marking an increase of 150.30 points or 0.19 percent. The 30-share index commenced with a notable gap-up at 81,456.67, compared to the previous session's close of 80,567.71, following the announcement of GST reforms.

The Nifty wrapped up at 24,734.30, up by 19.25 points or 0.08 percent.

"The markets experienced a volatile session, ultimately ending with slight gains, bolstered by the sweeping GST reforms that indicate a fundamental tax overhaul. The Nifty began robustly, buoyed by significant advances in the auto and consumer staples sectors, but profit-taking and weakness in certain heavyweight stocks pulled the index lower as the day wore on," stated Ajit Mishra, SVP, Research, Religare Broking.

Ultimately, it closed modestly higher at 24,734.30. Sector-wise, auto, financials, and FMCG sectors led the gains, while IT, energy, and realty sectors lagged notably. The broader indices, however, underperformed after recent gains, declining by over half a percent each.

The GST 2.0 reforms bolster the case for a consumption-driven recovery, particularly benefiting the auto and consumer staples sectors. Analysts also noted that select metals and infrastructure companies associated with rural stimulus remain in focus.

Among the Sensex constituents, Mahindra and Mahindra, Trent, ITC, HDFC Bank, ICICI Bank, and Asian Paints emerged as top gainers. Conversely, Maruti, BEL, HCL Tech, PowerGrid, Infosys, NTPC, Kotak Bank, Tech Mahindra, Tata Motors, Tata Steel, and UltraTech Cement ended in negative territory.

Sectoral indices displayed mixed reactions in light of profit booking. The Nifty Fin Services surged by 120 points or 0.47 percent, Nifty Auto climbed 219.40 points, and Nifty FMCG increased by 134.85 points or 0.24 percent, while Nifty Bank remained flat. Nifty IT dropped by 331.85 points or 0.94 percent.

Broader indices faced selling pressure despite positive moves towards GST rationalization. The Nifty Small Cap 100 fell by 126 points or 0.71 percent, and the Nifty Midcap 100 slipped by 286.35 points, whereas the Nifty 100 ended the session flat.

The Rupee traded weak at 88.11, down by 0.07, as FIIs remained net sellers while expectations surrounding GST reforms provided limited support.