Indian Stock Market Rallies on GST Reforms, Nifty Tops 24,800

Indian Stock Market Rallies on GST Reforms, Nifty Tops 24,800

The Indian stock market kicked off Friday, September 5, 2025 with a surge of optimism thanks to sweeping GST reforms. Nifty futures indicated a positive opening, and indeed, the indices responded strongly—Nifty climbed past 24,800 and Sensex even crossed the 81,000 mark early in the day.

The rally was powered by major players like Reliance Industries and HDFC Bank, whose strong performances helped sustain bullish momentum amid growing confidence in the so-called “GST 2.0” reforms.

Encouragingly, the auto sector posted solid gains (around 1%) following the government’s GST cut—from 28% to 18% on small cars, motorcycles, buses, trucks, and ambulances. This relief in vehicle taxation offered a direct boost to consumption-linked sectors.

However, not all sectors rode the wave. IT and consumer stocks reversed early gains and ended the day in the red—tech declined about 1.2% and consumer stocks slipped 1.1%. Analysts attributed this downturn to weaker U.S. labor data dampening global growth expectations, as well as uncertainty over a potential new tobacco levy that weighed on ITC.

By mid-session, markets showed signs of consolidation and early enthusiasm gave way to cautious profit-booking. Despite opening up to 900 points higher, the Sensex faded later—reflecting a classic “buy on the rumor, sell on the news” scenario.

Still, broader market sentiment remained mostly positive. Small- and mid-cap indices edged up by about 0.3% each, signaling that investors were still finding value beyond the headline stocks.

Meanwhile, behind the scenes, macro forces also played their part. Persistent optimism in global markets—particularly hopes of an imminent U.S. Federal Reserve rate cut—provided additional tailwinds, alongside strong domestic institutional inflows that balanced out foreign investor caution.

In summary: Friday’s market was characterized by an early surge fueled by GST reform enthusiasm, a standout auto rally, headline-driven buying, followed by a measured pullback as investors weighed the freshness of the reforms against lingering macro uncertainties.

The Indian stock market staged a spirited opening on September 5, 2025, with the Sensex briefly surging over 900 points and Nifty crossing the crucial 24,800 mark. However, as the day progressed, profit booking set in and dragged the indices off their highs. While the sentiment remains broadly bullish due to the recent GST reforms, traders are now closely watching key technical levels to gauge the next move.

The Nifty 50, after touching an intraday high around 24,830, faced resistance and is now hovering near 24,600. The immediate resistance for Nifty lies at 24,850–24,900, and a sustained breakout above this range could push it towards 25,000+ in the short term. On the downside, strong support is seen around 24,300–24,200, below which selling pressure may intensify.

The Sensex, similarly, saw resistance near 81,000, which aligns with psychological levels. The immediate support for Sensex is now pegged at 80,000–79,750.

Among the top-performing stocks, M&M has turned into a market favorite. With momentum on its side, its next resistance is seen near ₹1,750, while support lies at ₹1,660. Traders are keenly eyeing whether it can break out with volume for a fresh upside.

Bajaj Finance, another standout gainer, is approaching a stiff resistance around ₹8,000. If this level is crossed convincingly, the next target could be ₹8,250–8,300. Immediate support is placed at ₹7,700.

Avantel Soft, after jumping nearly 13%, is showing signs of extended rally fatigue. It has immediate resistance near ₹520, with support around ₹465—making it a volatile but closely watched counter in the small-cap space.

On the downside, Tata Consumer Products is nearing a breakdown zone. With resistance around ₹1,080, the stock is vulnerable to further downside if it breaches the ₹1,040 support level.

Meanwhile, Wipro continues to struggle below its 200-DMA. With resistance at ₹470, it needs to reclaim this zone before any bullish sentiment can return. Support lies at ₹445.

The overall sentiment is cautiously optimistic, but most analysts warn that unless Nifty decisively breaks out above 24,900, a sideways consolidation may continue. Sectorally, auto and financials are leading, while IT and FMCG are under pressure.

Top Gainers

• The auto sector continued to shine, with M&M (Mahindra & Mahindra) and the Bajaj twins (Bajaj Finance & Bajaj Finserv) leading the rally, supported by GST-driven optimism and strong domestic sentiment.

• Additionally, Apollo Hospitals, Nestlé India, and Avantel Soft posted significant gains, with Avantel Soft notably jumping 13%.

Top Losers

• On the flip side, major underperformers included HDFC Life, Tata Consumer Products, Wipro, Bharat Electronics, and IndusInd Bank, which were among the bigger decliners amid broad sectoral weakness.

Summary Table