Sensex and Nifty Open Higher on Global Cues, GST Relief, and Fed Rate

Mumbai, September 8: Indian equity markets opened higher on Monday, following strong global cues and supported by hopes of domestic tax reforms. The positive performance went on in the afternoon session. At 1:10 IST, the Sensex was at 81,121.12, higher by 410.36 points or 0.51%, and the Nifty rose 124.20 points or 0.50% to 24,865.20.

Sectoral Trends

Gains were spearheaded by metals, auto, and infrastructure stocks, with Tata Steel, Tata Motors, Mahindra & Mahindra, Adani Ports, UltraTech Cement, and Power Grid being amongst the top gainers. FMCG and consumer-facing stocks were weak, with Asian Paints, Trent, Bharti Airtel, and Titan declining in early trade.

Global Market Influence

Asian markets were trading in the green, with the Nikkei 225, Kospi, SSE Composite, and Hang Seng all in the positive. The rally came after a soft US jobs report for August, in which only 22,000 jobs were added and unemployment was up at 4.3%. The data supported the likelihood of a 25-basis-point rate reduction at the US Federal Reserve’s September 17 policy meeting, lifting sentiment in emerging markets such as India.

Domestic Triggers

Domestically, the recent rate cut by the Goods and Services Tax (GST) Council, effective from September 22, is seen to boost demand in autos, consumer durables, and other discretionary categories before the festive season. The policy action is being interpreted as a short-term demand impetus for India’s slowing consumption patterns.

On the other hand, foreign institutional investors (FIIs) were again net sellers on Friday, selling equities amounting to ₹1,304.91 crore. But domestic institutional investors (DIIs) cancelled out the pressure by buying stocks amounting to ₹1,821.23 crore, keeping the markets stable.

Commodities and Currency

Brent crude futures gained 1.19% to USD 66.29 a barrel, weighing on India’s import bill in the near term. The rupee opened firm against the US currency, with market participants monitoring both crude price action and the Fed’s future policy move.

Previous Close

On Friday, the Sensex had closed almost flat at 80,710.76, while the Nifty settled marginally higher at 24,741.

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