September 4, 2025

Indian stock markets started Wednesday on a shaky note! The S&P BSE Sensex dipped 127.58 points (0.16%) to 80,030.30, while the NSE Nifty 50 lost 39.3 points (0.16%) falling to 24,540.30. Banking and IT shares led the slide as investors grew cautious. Big names like Infosys, Bharti Airtel, Bajaj Finance, ICICI Bank, and Hindustan Unilever fell between 0.4% and 1%. Why the worry? India’s GST Council was about to meet, with everyone eager for possible tax cuts that could boost sales and the economy. IT firms felt the pinch, dropping 0.3%, mainly due to concerns over their U.S. revenues. Financial stocks nudged down by 0.1%. But wait, there’s a silver lining! Auto and consumer shares gained slightly, each up by 0.1%, showing some hopeful vibes ahead of the GST talks. Small and mid-cap stocks didn’t just watch—they marched ahead! Small-caps rose 0.5%, and mid-caps climbed 0.3%, grabbing the spotlight. Dr. V.K. Vijayakumar, Chief Investment Strategist at Geojit Investments, added spice with his take: “There are both positive and negative factors at play,” he said. Global uncertainty is making markets jittery. Export pressures loom because India isn’t budging on the 25% U.S. tariff imposed under Trump’s era. But, the news isn’t all gloomy! India’s Q1 GDP growth of 7.8% shines bright, and upcoming GST reforms could push earnings higher for FY26 and FY27. This might even lure foreign investors back, sparking a market rally soon. Vijayakumar also gave a warning: “Volatile days are ahead,” and said investors should “gradually accumulate high-quality, fairly valued stocks.” Also commenting, Anand James, Chief Market Strategist at Geojit, noted earlier gains faded, calling them “rejection trades.” He said Nifty’s close above 24,550 is okay but not exciting. If Nifty crosses 24,670, better days could come. On the flip side, he cautioned that levels like 24,200 to 23,860 are looming, so investors should be extra careful. Looking beyond India, global markets are feeling the heat too. Bond selloffs in Asia pushed yields up, driving investors to gold which touched new highs. Japan’s 30-year bond yields hit a record 3.255%, mirroring U.S. Treasury moves. Tokyo stocks opened weaker after U.S. manufacturing data showed contraction for six months in a row, thanks to import tariffs. Investors await European service sector data and key U.S. jobs reports later this week to guess the Federal Reserve’s next moves. Most expect the Fed to cut rates soon, with futures showing an 89% chance of a quarter-point cut. Oil Prices stood steady in Asia, with Brent crude around $69.13 per barrel. Traders looked ahead to the weekend’s OPEC+ meeting, which may shake up markets. In the money flow game, Foreign Institutional Investors (FIIs) sold shares worth over Rs 1,159 crore on September 2, but Domestic Institutional Investors (DIIs) bought shares worth Rs 2,550 crore. Finally, a tiny cheer for the Rupee! It rose 3 paise from its record low to 88.12 against the U.S. dollar in early trade, beating the trend of other Asian currencies. Meanwhile, the dollar index nudged up slightly, lingering near 98.47. The GST council meeting might just be the game-changer that stock markets crave. Will tax cuts spark the expected rally? Stay tuned! Stocks are sizzling with both risk and promise.

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Tags: Sensex, Nifty, Gst council, Stock market, India economy, Foreign investors,