Mumbai’s stock market kicked off the week on a positive note, thanks to some welcome GST rate cuts that are easing the burden on everyday folks. But traders are keeping a close eye on the ongoing tariff tensions between India and the US, which could shake things up.
Around 9:35 am, the Sensex climbed 280 points, or 0.35%, to hit 80,991. The Nifty also rose 84 points, or 0.34%, reaching 24,825. Broader markets showed strength too, with the Nifty Midcap 100 up 0.77% and the Nifty Smallcap 100 gaining 0.72%.
In sectoral highlights, the Nifty Auto index led the pack with a solid 1.52% jump, followed by Nifty Metal and Nifty Realty. Top performers in the Nifty included Tata Steel, which surged 2.57%, along with Tata Motors, NTPC, Hindalco, and SBI. On the flip side, stocks like SBI Life Insurance, Asian Paints, Dr Reddy’s Labs, Titan Company, and Trent saw declines.
Experts point out that the Nifty bounced back impressively after last week’s midweek dip, rebounding from its 100-day EMA around 24,633. It even formed a hammer candlestick pattern on the daily chart, signaling strong buying interest at lower prices.
The big news boosting sentiment? The GST Council’s latest moves slashed rates on insurance, medicines, and daily essentials. This brings real relief to households, farmers, and industries across India, making GST reforms a hot topic for economic growth.
Amruta Shinde from Choice Broking shares some technical insights: “Key support levels sit around 24,600–24,280, where the 100-day and 200-day EMAs meet. If Nifty closes decisively above 25,000, it could spark the next rally toward the 25,500–25,675 zone.”
That said, uncertainty in US-India trade relations is still casting a shadow on Indian stock markets. Analysts warn that potential restrictions on India’s IT exports could add pressure, even though reciprocal tariffs haven’t hit services trade yet. Dr VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, notes, “The GST reforms gave markets a quick morale boost, but the excitement faded fast since some cuts were already priced in. Trade worries will keep influencing sentiment.”
On a brighter note, recent comments from US President Donald Trump about the “special US-India ties” suggest the strained relationship might be improving, which could help ease tariff-related uncertainty.
Over in the US, markets closed lower on Friday—the Dow Jones dropped 0.48%, Nasdaq fell 0.03%, and S&P 500 slipped 0.32%. Asian markets showed a mixed bag today: China’s Shanghai index rose 0.16%, Shenzhen added 0.18%, Japan’s Nikkei jumped 1.42%, Hong Kong’s Hang Seng gained 0.36%, and South Korea’s Kospi edged up 0.2%.
Investor flows tell their own story—foreign institutional investors (FIIs/FPIs) sold off Rs 1,304 crore worth of Indian equities on Friday, while domestic institutional investors (DIIs) scooped up Rs 1,821 crore in net buying. As GST booster effects play out amid US-India trade talks, keep watching for more volatility in Sensex and Nifty updates.
