Nifty Slips on Profit Booking Ahead of GST Meet; FMCG, Energy Shine as Banks Drag

📰Daily Market Wrap-Up by Stock Whisperers- September 02, 2025

Author

thestock whisperers
September 02, 2025

September 02, 2025

📈 Market Overview:

Market Overview

Summary of the Day's Market Performance

  • The Sensex fell 243.92 points (-0.3%) to close at 81,237.83, reversing morning gains.

  • The Nifty dropped 49.40 points (-0.2%) to 24,707.20, ending in the red.

  • Midcaps (+0.3%) and Smallcaps (+0.5%) saw decent buying, continuing yesterday’s momentum.

  • FMCG (+1.1%) and Energy (+1%) were top gainers, while Banks (-0.6%) and Auto (-0.3%) faced profit booking.

💸 Market Transactions:

  • Foreign Institutional Investors (FII): Sold ₹1,159.48 crore

  • Domestic Institutional Investors (DII): Bought ₹2,549.51 crore

DII inflows supported broader markets, though FII outflows triggered the late sell-off.

📊📑 Important Observations and Market Sentiments: Editor Special

  • Domestic equities reversed early gains from strong macro data, ending lower due to profit booking ahead of the GST Council meeting and F&O expiry. Banking stocks led the decline, while sugar stocks rallied on relaxed ethanol norms, and export-oriented firms gained from dovish US remarks renewing trade optimism.

  • Investors remain cautious, focusing on domestic consumption amid global uncertainty (e.g., US tariffs, Russia-Ukraine tensions). Domestic support comes from a potential RBI rate cut, robust monsoon, and Q2 GDP expectations (pending exact data), though GST and Fed policy loom large.

  • Analysts expect Nifty to consolidate around 24,600–24,900, with support at 24,500—selective buying in defensive stocks advised.

❓ DO YOU KNOW?

The GST Council’s meeting tomorrow may propose a 5% hike on luxury EVs, potentially impacting auto stocks like Tata Motors and M&M, following a reported draft proposal today.

📰Stock News:

Key Stock Movements and News

  • Top Gainers: Sun Pharmaceutical, Axis Bank, Hindustan Unilever (HUL), and SBI Life Insurance

  • Top Losers: Tata Consultancy Services (TCS), Mahindra & Mahindra (M&M), Hero MotoCorp, Wipro, Bajaj Auto, and Tata Motors

  • Tata Motors fell 2.39% after a report on higher GST for luxury EVs sparked concerns, hitting auto sentiment.

  • Mahindra & Mahindra dropped 2.92% due to GST hike fears on luxury EVs and profit-taking post-August sales.

  • Tata Consultancy Services fell 3.47% after lackluster Q1 FY26 earnings triggered IT profit-booking.

  • Wipro dropped 2.62%, impacted by IT sector weakness following TCS’s earnings miss.

  • Bajaj Auto fell 2.54% due to profit-taking in auto and GST concerns.

  • Hero MotoCorp dropped 2.74% amid the auto sector sell-off and GST fears.

  • Sun Pharmaceutical gained 0.71%, driven by defensive buying in pharma.

  • Hindustan Unilever rose 0.46%, supported by FMCG defensive buying.

  • Bharat Electronics was in focus after securing a ₹644 crore order, boosting defense sentiment.

  • Popular Vehicles and Services traded flat at ₹119.35 after its subsidiary’s acquisition of BharatBenz dealership operations.

  • Laurus Labs traded flat after board approval for Unit-1 demerger into Sriam Labs and the remaining operations’ amalgamation.

  • Lemon Tree Hotels surged 8.77% to ₹169.25, hitting a 52-week high on high volume and hospitality strength.

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:

  • HUL: FMCG resilience to monitor.

  • Tata Motors: GST impact on autos to watch.

  • Lemon Tree Hotels: Hospitality rally to observe.

📝Summary:

Indian markets fell 0.2%, with Nifty at 24,707, as profit booking erased morning gains ahead of GST talks and F&O expiry. FMCG and Energy gained, while Banks and Auto lagged. DII buying offsets FII outflows, but caution persists—focus on GST outcomes and US cues!

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