Market Ends Flat as GST Boosts Offsets Tariff Worries; Autos, FMCG Outperform

📰Daily Market Wrap-Up by Stock Whisperers- September 04, 2025

Author

thestock whisperers
September 04, 2025

September 04, 2025

📈 Market Overview:

Market Overview

Summary of the Day's Market Performance

  • The Sensex rose 150.30 points (+0.19%) to close at 80,718.01, recovering from a shaky start.

  • The Nifty gained 19.25 points (+0.08%) to 24,734.30, ending with marginal gains.

  • Midcap and Smallcap indices shed 0.6% each, showing some weakness in broader markets.

  • Auto index rose nearly 1%, FMCG up 0.3%, while IT, Media, Metal, Oil & Gas, Realty, Power, and PSU Bank fell 0.5-1%.

💸 Market Transactions:

  • Foreign Institutional Investors (FII): Sold ₹106.34 crore

  • Domestic Institutional Investors (DII): Bought ₹2,233.09 crore

DII inflows drove the rally, countering FII outflows amid positive sentiment.

Summary: GST Update SEP 2025 Early Diwali Gift from Modi Government

  • The GST Council approved a simplified two-tier system (5% and 18%, with a new 40% slab for luxury/sin goods), effective September 22, 2025, aligning with Navratri.

  • 0% (Exempted): Includes fresh foods, Indian breads, life-saving medicines, and life/health insurance premiums.

  • 5% Slab: Covers processed foods (e.g., biscuits, ghee), toiletries, footwear/garments under ₹2,500.

  • 18% Slab: Applies to consumer durables (e.g., ACs, TVs), small cars, and cement.

  • 40% Slab: Targets luxury cars, tobacco, aerated drinks, and gambling (tobacco implementation tied to debt clearance).

  • Cheaper: Household goods, health services, small cars, economy air tickets/hotel stays under ₹7,500.

  • Costlier: Luxury items, sugary drinks, online gaming.

  • Impact: A ₹48,000 crore revenue loss is expected, offset by increased consumption and compliance, boosting sectors like Autos and FMCG.

📊📑 Important Observations and Market Sentiments: Editor Special

  • Markets closed almost flat after a promising start, with profit booking emerging except in consumption-oriented sectors like Auto, Finance, and FMCG. The GST Council’s in-line rationalization outcome, effective September 22, boosted domestic consumption demand, countering US tariff threats (25% on steel/aluminum).

  • Export-oriented sectors face challenges as the US, India’s largest market (2.2% of GDP), imposes trade pressures, prompting strategies like cross-country billing and overseas manufacturing. Gold’s global rally reflects caution over prolonged tariffs and geopolitical tensions (Russia-Ukraine).

  • Analysts expect Nifty to consolidate around 24,600–24,900, with support at 24,500—focus on consumption stocks amid GST-driven demand and upcoming US Fed cues.

❓ DO YOU KNOW?

The GST Council’s new two-tier system (5% and 18%, with a 40% luxury slab) is the first major tax overhaul since 2017, aligning with Navratri to stimulate festive season spending.

📰Stock News:

Key Stock Movements and News

  • Top Gainers: M&M, Bajaj Finance, Bajaj Finserv, Apollo Hospitals, and Nestle

  • Top Losers: HDFC Life, Tata Consumer, Wipro, Bharat Electronics, and IndusInd Bank

  • Mahindra & Mahindra (M&M) soared up to 6% after GST cuts from 28% to 18% on small/entry-level cars boosted auto sentiment.

  • Bajaj Finance surged up to 6%, driven by positive NBFC sentiment post-GST reforms.

  • Britannia Industries rose 3% as GST rates on FMCG essentials like toiletries and packaged foods dropped to 5%.

  • Hindustan Unilever (HUL) gained due to GST cuts on daily essentials to 5%, lifting FMCG sentiment.

  • Apollo Hospitals rose 2%, supported by healthcare strength and solid Q1 FY26 results.

  • Solar Industries fell after an explosion at its Chakdoh factory caused one casualty and eight injuries, with a probe underway.

  • Tata Capital was in focus ahead of its ₹17,200 crore IPO, with roadshows concluded and listing expected by September 30.

  • FedBank Financial Services traded flat after allotting 2,91,253 equity shares under ESOP, raising paid-up capital to ₹3,73,60,09,370.

  • Inox Green Energy Services traded flat after securing O&M agreements for 189.1 MWp solar projects in Maharashtra.

Markets Enter September on Cautious Note: Tariff Heat, FII Outflows Weigh; All Eyes on US Jobs Data

September 01-05, 2025

The week of September 1-5, 2025, follows a bearish close with Sensex at 79,809.65 and Nifty at 24,426.85, pressured by US tariffs and FII outflows. Consolidation is expected in the 24,300-24,900 range (Nifty), with volatility from US jobs data and PMI releases. Tariff truce extensions provide relief, while Q1 earnings wind down amid subpar growth. Opportunities in banking, tech, auto, and energy sectors, with a stock-specific approach advised amid global rate-cut optimism and domestic resilience.

👀Stocks to Focus:

  • M&M: GST-driven auto gains to monitor.

  • HUL: FMCG demand to watch.

  • Solar Industries: Safety probe impact to observe.

📝Summary:

Indian markets rose 0.08%, with Nifty at 24,734, as GST cuts lifted Auto and FMCG, offsetting tariff fears. Midcaps/Smallcaps dipped, but DII buying supported gains. Focus on GST-driven consumption and US Fed policy next week!

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