SENSEX SPURTS 414 PTS; NIFTY TRADES ABOVE 24,800 LEVEL

The headline equity indices traded with decent gains in the afternoon trade after the government cut taxes on several goods as part of a major GST overhaul. The move aims to boost consumer spending ahead of the festive season and ease the impact of high U.S. tariffs, among other factors. Market participants� focus on GST reforms announced by the GST Council eclipsed the impact of the weekly expiry of Sensex F&O contracts.

The Nifty traded above the 24,800 level. Auto, financial services and FMCG shares advanced while PSU bank, oil & gas and IT shares declined.

At 13:30 IST, the barometer index, the S&P BSE Sensex, rallied 413.57 points or 0.51% to 80,981.31. The Nifty 50 index added 104.55 points or 0.41% to 24,817.60.

In the broader market, the S&P BSE Mid-Cap index shed 0.22% and the S&P BSE Small-Cap index fell 0.21%.

The market breadth was negative. On the BSE, 1,972 shares rose and 2,067 shares fell. A total of 185 shares were unchanged.

Gainers & Losers:

Mahindra & Mahindra (up 6.27%), Bajaj Finance (up 4.92%), Bajaj Finserv (up 2.68%), Apollo Hospitals Enterprise (up 1.95%) and Trent (up 1.82%) were the major Nifty50 gainers.

Tata Consumer Products (down 2.22%), HDFC Life Insurance Company (down 1.85%), Power Grid Corporation of India (down 1.21%), Bharat Electronics (down 1.22%) and Maruti Suzuki India (down 1.07%) were the major Nifty50 losers.

GST Reforms:

The GST Council approved the significant rate cuts on several essential items. Effective from September 22nd, the new rates aim to boost consumption by shifting to a two-slab structure of 5% and 18%, abolishing the 12% and 28% rates. A special 40% GST slab has been introduced for super luxury and sin goods.

In a major relief to the automobile and two-wheeler sector, GST on small cars and motorcycles with engine capacity up to 350cc has been reduced from 28% to 18%, a move aimed at boosting demand in the mass mobility segment. Additionally, parts and accessories of motorcycles up to 350cc will now attract 18% GST instead of 28%.

On the other hand, the levy on premium motorcycles exceeding 350cc has been sharply raised from 28% to 40%, making high-end bikes costlier.

The GST Council exempted individual life and health insurance policies from the 18% Goods and Services Tax (GST).

Several fast-moving consumer goods (FMCG) currently taxed at 12% or 18% will now fall under the 5% bracket. Further, GST on tractors (except road tractors for semi-trailers above 1800cc) has been redcued to 5% from 12%. For road tractors with engines above 1800cc, the tax was lowered to 18% from 28%. Additionally, GST on tractor tyres and parts was slashed from 18% to 5%.

In education segment, the council reduced GST on pencils, crayons, pastels, drawing charcoal, chalk sticks, and tailor�s chalk from 12% to nil. Exercise books, graph books, laboratory notebooks, and notebooks too have been exempted from GST, compared with 12% earlier. Additionally, boxes, pouches, wallets, and writing compendiums of paper or paperboard containing assorted stationery will now attract 5% GST instead of 12%.

Stocks in Spotlight:

Paisalo Digital jumped 4.14% after the company�s board approved raising Rs 50 crore through issuance of debt securities via private placement.

Force Motors fell 5.31%. The company said that its domestic sales jumped 6.60% to 2,295 units in August 2025, as against 2,153 units sold in August 2024.

Angel One shed 0.11%. The firm announced that its client base jumped 26% to 33.57 million in August 2025, compared with 26.65 million in August 2024.

CFF Fluid Control advanced 1.83% after the company announced that it had received a Letter of Intent (LOI) from the Indian Navy�s Material Organisation for the supply of various equipment under the P75 submarine project.

Global Markets:

European stocks opened mixed on Thursday as traders assess the fate of Trump�s tariffs

Asian market traded mixed as investors awaiting Australia�s household spending data for July later in the day.

Global bond markets will continue to be in focus with long-dated borrowing costs around the world under pressure. The U.S. 30-year Treasury yield nudged above 5% on Wednesday morning for the first time since July after a court ruled that most of the Trump administration�s tariffs are illegal, raising questions over the future of tariff revenues.

Overnight on Wall Street, U.S equities closed mixed. The S&P 500 rose Wednesday, boosted by tech shares after a federal court decision in an Alphabet antitrust case fueled optimism that the tech giants would be able to weather regulatory threats.

Nasdaq Composite gained 1.03%, while the S&P 500 climbed 0.51%. The Dow Jones Industrial Average shed 0.05%.

Traders awaited for Nonfarm payrolls data due on Friday.

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