Sensex Turns Negative, Nifty Slips Below 24,650 After Firm Start on GST Boost

Mumbai, September 5 – Indian equity benchmarks, Sensex and Nifty, opened in green on Friday, mostly extending their rally on the recent rate rationalisation by the GST council, along with strong global cues. However, within the first hour of trading, both indexes slipped mostly because of the profit booking activities and FII selling.

Market Snapshot

As of September 5, 2025, 11:18 AM, the equity markets were trading in the red with both benchmarks, Sensex and Nifty, edging lower. The Sensex slipped 235.39 points, or 0.29%, to 80,482.62. Similarly, the Nifty 50 fell 53.45 points, or 0.22%, to 24,680.65, after opening at 24,818.85. During the session, the index touched a high of 24,832.35 and a low of 24,631.95 so far, reflecting subdued investor sentiment.

Early Gains Fade

As of the opening of the day’s session, the Sensex had climbed 318.55 points to 81,036.56, and the Nifty advanced 98.05 points to 24,832.35, which turned red within the first hour of trading mostly because of high selling pressure. Some of the early gainers of the day include Mahindra & Mahindra, Trent, Tata Motors, Asian Paints, Power Grid, and Reliance Industries, whereas companies like ITC, Hindustan Unilever, NTPC, and Sun Pharma were the main losers so far.

The Early Rally Drivers

The initial optimism in the market came after the GST Council announced considerable rate rationalization under which it restricted slabs to 5 percent and 18 percent. The new rates will apply from September 22, which is the first day of Navaratri. The council has also completely slashed the tax on health and life insurance premiums. At the same time, it has set the rates for several common-use items like roti, paratha, hair oil, ice creams, and TVs significantly lower.

In addition to the positive rate changes in GST, even the global cues have been positive after the extended turmoil. Asian markets were trading firm, with South Korea’s Kospi, Japan’s Nikkei 225, Shanghai’s SSE Composite, and Hong Kong’s Hang Seng in the green. Overnight, US markets also ended higher. Meanwhile, Brent crude eased 0.18 per cent to USD 66.87 a barrel.

Outlook and Insight

While the Sensex and Nifty slipped into negative territory despite a great start during the opening session, the broader trend suggests that the markets are sensitive to policy changes and international signals. Investors are viewing the GST rate rationalisation and positive global cues as a medium-term positive, which are likely boosting the consumption-driven sectors. Therefore, in the near term, investors should keep an eye on FMCG and auto stocks, as these segments could benefit the most from lower GST rates, even if volatility from global flows weighs on index performance.

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