Synopsis: Indian stock markets closed the week on a positive note, supported by GST rationalisation and gains in auto and metal sectors, even as IT and FMCG stocks faced pressure. Analysts expect mixed sentiment ahead, with domestic reforms balancing global uncertainties.
The Indian stock market wrapped up a volatile week with modest gains, largely aided by optimism surrounding GST reforms. Benchmark indices Nifty and Sensex both ended higher by nearly 0.85 per cent, as investors shifted their attention towards mid- and small-cap stocks.
The GST rate rationalisation, which cut tax rates on several goods and automobiles, boosted consumer-centric and growth-driven sectors. Auto stocks like Eicher Motors and M&M surged 2 per cent each to record highs after vehicles moved from the 28% to 18% GST slab. Metals also performed strongly, with GMDC jumping 11% to ?509, while NMDC and National Aluminium gained up to 2 per cent.
In contrast, IT stocks struggled, with Nifty IT slipping over 2.5 per cent amid worries of weaker discretionary spending due to economic uncertainty, higher interest rates, and global geopolitical risks. FMCG and Realty indices too saw up to 1.5 per cent declines on profit booking.
Market experts noted that while GST reforms are expected to spur domestic demand, global trade tensions, Eurozone debt imbalances, and foreign fund outflows continue to weigh on investor sentiment. Analysts highlighted that multi-asset investment strategies may gain traction in the current environment.
Technical charts suggest that Nifty has formed an inside bar pattern, with support levels at 24,650 and 24,500 zones. Holding above 24,700 could push the index higher towards 24,850–25,000 levels in the coming sessions.
Meanwhile, macroeconomic cues like a potential US Fed rate cut and upbeat domestic data supported market resilience. However, the rupee fell to a record low against the US dollar, and gold prices soared to lifetime highs, reflecting safe-haven demand.
Overall, GST rationalisation is seen as a major step toward boosting consumption, simplifying the tax structure, and widening the tax base, but global uncertainties are expected to keep markets cautious in the near term.
Disclaimer: This article is based on publicly available financial updates and expert commentary. Readers should consult certified financial advisors before making investment decisions.
