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Nifty Closes with Minor Gains as GST-Fueled Rally Fizzles Out

The market’s excitement over GST 2.0 reforms proved to be short-lived, as the Nifty failed to sustain its morning momentum. After a strong gap-up opening of 265 points, the index immediately faced profit booking at higher levels and reversed the trend, falling 272 points from its intraday high to 24,708. Nifty ultimately ended with a minor gain of 19 points (0.08%) at 24,734.  

In a day, marked by significant profit-booking, a few stocks managed to hold their ground. Leading the charge within the Nifty pack were M&M, Bajaj Finance, and Apollo Hospitals. Conversely, it was a tough session for names such as HDFC Life, Tata Consumer, and IndusInd Bank, which ended as the top losers. On the volumes front, cash market turnover on the NSE was higher, up 10% from yesterday.  

Amongst the sectoral indices, it was a mixed picture. Nifty Auto, Financial Services, and FMCG emerged as the major gainers for the day, while sectors like Nifty PSU Banks, OIL/Gas, and IT suffered the most. 

The broader market echoed the cautious sentiment, with midcap and smallcap indices underperforming the benchmark. The Nifty Midcap 100 Index fell 0.67%, while the Nifty Smallcap 100 Index lost 0.71%. Market breadth also reflected this negative shift, turning negative after three consecutive days of gains. The advance-decline ratio on the BSE stood at 0.78.  

The Indian rupee broke the three-day winning streak by depreciating 7 paise against the dollar to close at 88.14 levels. This fall is primarily attributed to a stronger greenback and persistent FII outflows from domestic markets.  

The Nifty’s attempt to sustain above the crucial 50-day DEMA resistance failed, as it gave up all its morning gains and closed near the day’s low. The index ended the session exactly at its 20-day DEMA, placed at 24734. Strong support for the Nifty remains near 24500. For a bullish confirmation on positional charts, the Nifty needs to decisively close above the 24800 resistance. 

Source: HDFC Securities – Prime End of the Day Summary, 4 Sept, 2025 

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