Indian equity benchmarks continued to trade in the green on September 4, though they pared some of their early gains as profit-booking set in after the government’s GST relief announcements. The session also coincided with the first Thursday expiry of BSE Sensex derivatives contracts, adding a touch of volatility as reflected in a marginal rise in India VIX.
Around midday, the Sensex was higher by 387.86 points (0.48%) at 80,955.57, while the Nifty added 103.15 points (0.42%) to 24,818.20. Market breadth was relatively balanced, with 1,856 stocks advancing, 1,732 declining, and 140 remaining unchanged on the BSE.
Despite headline indices staying firm, the broader markets showed weakness. Both midcap and smallcap indices edged into negative territory, signaling selective profit-taking. Sector-wise, the Nifty Auto index, which was the morning’s top gainer, lost some steam but still managed to hold on to a 1% rise by noon. FMCG and consumer durables also eased from their intraday highs.
On the flip side, Nifty Pharma and Nifty IT emerged as laggards, shedding up to 0.4% in intraday trade.
Commenting on the policy move, Nitin Rao, CEO of InCred Wealth, said the swift rollout of GST cuts was aimed at boosting consumption ahead of the festive season. “The focus has been on tariff-hit, labour-intensive sectors, lowering costs for middle-class consumers, and improving overall sentiment,” he noted, adding that similar steps in the past had meaningfully lifted GDP growth.
Brokerage Motilal Oswal highlighted that GST 2.0, as the government’s first major reform initiative in its current tenure, is expected to drive a constructive response from markets. With Nifty valuations hovering near historical averages of about 20.8 times earnings and analysts projecting 10–12% profit growth for FY26, experts see room for a potential re-rating in equities.
