BIZ DESK
Domestic equity benchmarks ended with modest gains after a highly volatile session on Thursday. Initial optimism around sweeping GST 2.0 reforms lifted indices sharply, but profit booking and weakness in IT and energy counters pared most of the early momentum.
The Sensex opened with a surge of over 900 points to hit 81,456.67, before closing at 80,718.01, up 150.30 points or 0.19 per cent. The Nifty 50 settled at 24,734.30, up 19.25 points or 0.08 per cent.
“Markets witnessed a roller-coaster session. GST reforms triggered strong opening gains in auto and consumer sectors, but profit-taking in IT and energy heavyweights capped the upside,” said Ajit Mishra, SVP, Research, Religare Broking.
Sectoral Performance
- Auto, Financials, FMCG: Led the rally, with stocks like Mahindra & Mahindra, ITC, HDFC Bank, ICICI Bank, Asian Paints, and Trent among top gainers. Analysts expect auto and consumer staples to be the prime beneficiaries of the GST revamp.
- IT & Tech: Under heavy selling pressure, with Infosys, HCL Tech, and Tech Mahindra slipping amid concerns over global demand slowdown.
- Energy & Power: Weakness persisted in NTPC, PowerGrid, and Tata Steel, dragging the indices lower.
- Realty: Also underperformed as investors booked profits.
Broader markets fared worse, with the Nifty Smallcap 100 falling 0.71% and Nifty Midcap 100 slipping 0.57%.
Outlook
Analysts noted that the GST reforms bolster prospects for a consumption-driven recovery, especially for autos, consumer staples, and rural-linked sectors such as cement, metals, and infrastructure. However, persistent FII outflows and pressure in IT may keep volatility high.
Meanwhile, the rupee weakened to 88.11 per dollar, down 0.07, as foreign institutional investors continued to remain net sellers despite the reform-led optimism.
Sectoral Pulse
- Banking & Financials: Mixed bag. While PSU banks saw profit booking, private lenders like ICICI and Axis held firm. L&T Finance gained on integration updates.
- FMCG & Staples: Outperformed. GST cuts lifted sentiment for players like Britannia, Nestlé, and Tata Consumer. Expect volume-led growth in Q3.
- Metals: Steel Authority of India (SAIL) surged 5%, breaking past ₹127 resistance. Analysts see ₹140 as next target.
- IT & Tech: Rangebound. Infosys and TCS traded flat amid global tech rotation. Watch for cues from U.S. labor data.
- Auto & Discretionary: Maruti and M&M gained on festive demand outlook. EV buzz continues to support valuations.
Global Cues
- U.S. Futures: Mixed ahead of key jobs data. Nasdaq buoyed by Alphabet’s antitrust win and Apple’s breakout rally.
- Asia: Nikkei strong (+1.23%), but Hang Seng and Shanghai Composite under pressure.
- Crude Oil: WTI slipped to $63.50/barrel. Cooling inflation fears may aid RBI’s rate stance.
