Stocks Stay Steady: Nifty Dips Below 24,400; SBI, Trent, NTPC Listed as Top Stock Climbers
After a six-week slump, the Indian stock market is showing signs of recovery, with the Nifty50 reclaiming and closing above the 25,000 level for the first time since July 25, 2025. This positive development is largely due to a combination of factors, including the announcement of next-generation GST reforms by Prime Minister Modi, an upgrade of India's sovereign credit rating by S&P to BBB with a stable outlook, and foreign institutional investors (FII) short covering.
The recent rally has particularly benefited sectors such as consumer durables and automobiles. Companies like Hero MotoCorp, Maruti Suzuki, Bajaj Finance, Bajaj Auto, and Mahindra & Mahindra (M&M) have seen significant gains. This is partly attributed to expectations of GST rate cuts benefiting these sectors.
However, not all sectors have experienced growth. Key losers amid the rally include HCL Technologies, ITC, Larsen & Toubro (L&T), Sun Pharma, and Dr. Reddy's Laboratories.
Globally, Asian markets have shown mixed trends. Japan's Nikkei 225 was the worst performer with a 1.7% decline, while South Korea's Kospi and Kosdaq remained flat, and Australia's S&P/ASX 200 edged up 0.43%.
Today, the focus will be on key domestic high-frequency indicators such as HSBC India Manufacturing, Services, and Composite Purchasing Managers' Indexes (PMIs) to assess growth momentum. Additionally, corporate earnings from companies like DLF, Marico, Aurobindo Pharma, and Siemens are expected, which could influence market direction.
In the Sensex pack, top gainers include Kotak Bank, ITC, TCS, NTPC, and Trent.
As the market opens today, there is a cautious optimism. Market veteran Ajay Bagga predicts volatile markets due to various global events, including a potential truce announcement between Trump and Putin, tariff extensions, and a possible Ukraine-Russia truce during India's Independence Day long weekend.
Over 260 companies are scheduled to unveil their Q1 numbers today, including Astral, SJVN, BEML, Bata India, and JM Financial. Tata Motors is one of the stocks in focus at this hour, with shares up 2% despite brokerages listing out 3 big concerns for FY26.
In other news, India has paused Russian oil purchases and is considering offering concessions on agri and dairy products, according to a report.
For those interested in staying updated on the latest business news, our website App is a valuable resource. Prashanth Tapse, Senior VP (Research) at Mehta Equities, expects the index to find respite on positive cues from Wall Street.
As the market day begins, both the Nifty and Sensex opened in the green but flat. The Nifty opened at 24,371.50, also up by 0.03%, while the Sensex opened at 79,885.40, up 0.03%.
Last week, Nifty suffered its sixth straight weekly loss due to global trade tensions and muted Q1 earnings. However, with renewed hopes of a September Fed rate cut and positive domestic developments, the market outlook is cautiously optimistic. Investors are particularly attentive to GST reform progress and upcoming corporate results for further cues.
Nuvama has made 3 'Buy' recommendations with up to 31% upside potential. No immediate relief measures have been announced for exporters affected by Trump tariffs.
In conclusion, while global macroeconomic uncertainties remain a watch point, the market is showing resilience with strong domestic reform promises and credit rating upgrades providing support.
- The Indian stock market's recovery, with the Nifty50 reclaiming and closing above the 25,000 level, is partly due to the announcement of next-generation GST reforms, an upgrade of India's sovereign credit rating, and foreign institutional investors (FII) short covering.
- As the market opens today, there is a cautious optimism, with market veteran Ajay Bagga predicting volatile markets due to various global events.
- Globally, Asian markets have shown mixed trends, with Japan's Nikkei 225 being the worst performer, while South Korea's Kospi and Kosdaq remained flat and Australia's S&P/ASX 200 edged up.
- Companies like Hero MotoCorp, Maruti Suzuki, Bajaj Finance, Bajaj Auto, and Mahindra & Mahindra have seen significant gains due to expectations of GST rate cuts benefiting these sectors.
- Over 260 companies are scheduled to unveil their Q1 numbers today, including Astral, SJVN, BEML, Bata India, and JM Financial. Tata Motors is one of the stocks in focus, with shares up 2% despite brokerages listing out 3 big concerns for FY26.
