The Indian equity markets closed higher for the sixth consecutive day on Thursday, supported by optimism around potential Goods and Services Tax (GST) rate reforms, even as investors remained cautious ahead of the US Federal Reserve’s annual Jackson Hole symposium.
At close, the BSE Sensex added 142.87 points, or 0.17%, to settle at 82,000.71, while the NSE Nifty 50 advanced 33.20 points, or 0.13%, to finish at 25,083.75.
The Nifty opened firm in the morning but soon lost momentum, trading within a narrow 98.75-point range for most of the session. Analysts said the muted action reflected investors’ wait-and-watch approach before Fed Chair Jerome Powell’s speech at Jackson Hole, which may offer clarity on the US interest rate path.
“Market participants remained cautious, with global cues in focus. Powell’s comments will be key in shaping expectations around future monetary policy,” said Sudeep Shah, Head of Technical Research and Derivatives at SBI Securities.
Optimism also stemmed from domestic policy developments. A panel of state finance ministers has approved a proposal to simplify the GST structure by moving from four tax slabs to a dual rate system of 5% and 18%. “This step towards rationalisation is being viewed positively and has triggered sector-specific moves,” noted Ajit Mishra, SVP Research at Religare Broking.
Meanwhile, some market sentiment was dented by news that SEBI may scrap weekly derivatives expiry, impacting stocks linked to capital markets, according to Kunal Shah, Technical and Derivatives Analyst at Mirae Asset Sharekhan.
On the sectoral front, Nifty Pharma and Nifty Healthcare led the gains, supported by defensive buying. Pharma majors Cipla and Dr. Reddy’s Laboratories were among the top performers in the Nifty basket. In contrast, Nifty FMCG and Nifty PSU Bank indices ended lower due to profit-taking, with Tata Consumer Products and Bajaj Auto emerging as key laggards.
Broader markets underperformed the frontline indices, as both the Nifty Midcap 100 and Nifty Smallcap 100 ended in the red. Market breadth was slightly negative, with 231 stocks advancing out of the Nifty 500 universe, indicating selective buying.
Global geopolitical signals also added to the cautious tone. “While the Trump-Putin meeting has initially been viewed as market-friendly, any shift in stance from either side could reverse sentiment,” said Dr. Praveen Dwarakanath, Vice President at Hedged.
With domestic reform cues lending support and global factors keeping investors on edge, analysts expect markets to remain range-bound in the near term, with volatility picking up after Powell’s address.