GIFT Nifty Signals Positive Opening As GST Overhaul Set to Drive Sentiment

Mumbai, September 4: The Indian stock market is expected to open on a positive note today, along with most of its indices. One of the key triggers for the positive opening is yesterday’s GST Council meeting, where the Indian government introduced new GST reforms.

Gift Nifty Trading Higher By 0.49%

As of 8:30 AM today, Gift Nifty is trading higher by 0.49%, or 122.50 points and is trading at 24,958.00. The uptick in the index indicates that the investor sentiment will be high today, and the stock market may see strong demand.

Sensex and Nifty Ended Higher Yesterday

Yesterday, on September 3, both Sensex and Nifty ended higher after a rather volatile session. Sensex closed at 80,568, higher by 410 points while Nifty ended at 24,715, higher by 135 points. The stock market’s positive performance was led by metal stocks. Tata Steel, Titan, M&M, ITC and SBI were among the top gainers, while select IT and FMCG counters fell marginally.

Only Two GST Slabs From September 22

At the GST Council meeting yesterday, the four-slab GST system was removed. Effective from September 22, only two GST slabs of 5% and 18% will be used for goods and services. However, a 40% GST rate is now applicable on luxury and sin goods.

Goods such as Roti, parathas, paneer, UHT milk, maps, sharpeners and exercise books will see NIL GST. Butter, cheese, dry fruits, soaps, shampoos, toothpaste, bicycles will see 5% GST slab.

18 percent GST: Cement, ACs, refrigerators, washing machines, TVs, motorcycles up to 350 cc, small cars and auto components will have 18% GST. Lastly, there will be no GST on premiums of life and health insurance policies.

FIIs Net Sellers While DIIs Net Buyers

Yesterday, Foreign Institutional Investors (FIIs) remained net sellers at ₹1,666 crore, while Domestic Institutional Investors (DIIs) remained net buyers at ₹2,495 crore.

Wall Street Mixed While Asian Markets Steady

Overnight, Wall Street ended its run on a mixed tone but held firm as it approped record levels. On the other hand, Asian markets traded steadily but flat in early trade. The price of crude oil fell, while the US Dollar index weakened, providing a cushion to the Indian market.

GST Reforms Key Trigger Today

The announced GST reforms and the lowering of tax slabs will serve as a key trigger today and are likely to boost investor sentiment throughout the trading day. Analysts expect demand-sensitive sectors such as auto, FMCG, cement and agriculture-linked stocks to see strong demand. Investors will be keenly waiting for the market to open and take cues as the day goes ahead.

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