Will Nifty and Sensex Remain Flat as Investors Await GST Council Meeting Results?

Mumbai, Sep 3 (NationPress) The Indian benchmark indices opened unchanged on Wednesday, reflecting weak global signals, as investors closely monitor the results of the two-day GST Council meeting aimed at revising tax rates.

As of 9:29 AM, the Sensex experienced a rise of 32 points, equivalent to 0.04 percent, reaching 80,190, while the Nifty 50 ticked up by 2 points, or 0.01 percent, to 24,582.

The broadcap indices saw the Nifty Midcap 100 increase by 0.278 percent and the Nifty Smallcap 100 gain 0.36 percent.

Within sectoral indices, the Nifty Metal sector emerged as the leading gainer, surging 1.64 percent, followed by Nifty Oil & Gas with a 0.77 percent increase. Nifty Pharma saw a 0.12 percent rise, and Nifty PSU Bank advanced by 0.69 percent.

Among the Nifty constituents, prominent gainers included Tata Steel, up 2.22 percent, and Hindalco, which climbed 1.53 percent. Other noteworthy performers were ONGC, Axis Bank, and TCS. Conversely, the major laggards included Hero Motocorp, TATA Cons. Prod, Bajaj Finance, ICICI Bank, and SBI Life Insurance.

Analysts noted that the Nifty is maintaining its recovery trend on the daily chart and is securely positioned above the 24,400 support level.

"The index is currently consolidating within a wide range, indicating a healthy pause following recent gains. Immediate support stands at 24,500, with further support at 24,300. Resistance is anticipated around 24,800, with the crucial 25,000 psychological threshold also noted," stated Mandar Bhojane from Choice Broking.

"Global uncertainty may heighten market volatility. As India has resisted Trump's demands, the 25 percent penal tariff is unlikely to be lifted, potentially impacting our exports and jobs in the short term," added VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited.

The Q1 GDP growth of 7.8 percent reflects robust economic momentum, which is expected to be further enhanced by GST reforms.

The culmination of these factors could lead to an upward adjustment in earnings growth projections for FY26 and FY27. This, in turn, may result in FIIs becoming net buyers in India, potentially triggering a market rally in the coming weeks, he elaborated.

Asia-Pacific markets traded in a mixed manner as investors evaluated rising global bond yields alongside the latest trade and tariff developments.

Chinese President Xi Jinping remarked on Wednesday that the world faces a choice between “peace or war” and “dialogues or confrontation”, responding to US President Donald Trump's allegations of collusion between Beijing, Russia, and North Korea against Washington.

US markets closed lower overnight, with the Dow Jones Industrial Average falling 0.55 percent, while the Nasdaq decreased by 0.82 percent and the S&P 500 dropped 0.69 percent.

Asian markets predominantly traded in the red. China's Shanghai index fell 1 percent, Shenzhen dipped 0.67 percent, Japan's Nikkei was down 0.29 percent, while Hong Kong's Hang Seng Index decreased 0.40 percent. South Korea's Kospi edged up 0.38 percent.

On Tuesday, foreign investors (FIIs/FPIs) emerged as net buyers with inflows of ₹512 crore in Indian equities, while domestic institutional investors (DIIs) net purchased shares valued at ₹2,118 crore.