The Indian stock market witnessed a robust rebound on September 3, 2025, with both benchmark indices closing in green. Investor optimism was primarily fueled by expectations of a potential Goods and Services Tax (GST) slab rationalisation, coupled with a strong rally in metal stocks. Here’s a detailed look at the market movements and sectoral performance.
Market Performance: Sensex and Nifty Surge
- Sensex closed the day at 80,567.71, up 409.83 points or 0.51%.
- Nifty 50 settled at 24,715.05, rising 135.45 points or 0.55%.
- BSE Midcap Index gained 0.63%, while the Smallcap Index jumped 0.90%.
- BSE-listed firms’ market capitalisation increased to nearly ₹453 lakh crore from ₹450 lakh crore, adding roughly ₹3 lakh crore in wealth in a single session.
This recovery came after a mixed start, with markets initially struggling but later rebounding sharply from intraday lows. The Sensex touched a low of 80,004, while Nifty’s intraday low was 24,533 before the rally.
Key Drivers of Today’s Market Rally
1. GST Optimism Boosts Consumption-Centric Sectors
Investor sentiment was buoyed by expectations of GST rate rationalisation, which could positively impact domestic consumption.
- FMCG and consumer durable stocks saw buying interest.
- Auto and pharma indices closed at the day’s highs.
- Analysts noted that GST 2.0 could simplify tax slabs, potentially reducing prices for both essentials and big-ticket items, sparking festive-season demand.
The possibility of tax cuts across a range of goods led to optimism in multiple sectors, including FMCG, retail, durables, and automobiles.
2. Metal Stocks Lead Sectoral Gains
Metal shares extended their rally for the third consecutive day:
- Tata Steel surged 5.96%
- Hindalco Industries rose 3.02%
- JSW Steel climbed 2.94%
- SAIL and Hindustan Copper jumped 5.26% and 4.7%, respectively
The Nifty Metal Index closed 3.11% higher at 9,676, making it the top sectoral gainer.
The rally is supported by China’s “anti-involution” campaign aimed at curbing excess steel production and supply chain price wars. China plans to reduce steel capacity by 50 million tonnes in 2025, with an 8.5% production cut for the remainder of the year.
3. Global Cues Turn Positive
US markets showed signs of recovery, influencing domestic trading:
- Dow Futures recovered nearly 200 points from intraday lows.
- Nasdaq Futures rose 0.7%.
The initial decline on Wall Street earlier in the week had created short-term volatility, but positive cues helped Indian markets regain momentum.
4. Lower Volatility Encourages Trading
The India VIX eased nearly 4% to 10.96, suggesting reduced market volatility. A lower VIX generally signals calmer trading conditions, which often supports market rallies.
Nifty 50 Index: Top Gainers and Losers
Top Gainers:
- Tata Steel: +5.96%
- Hindalco Industries: +3.02%
- JSW Steel: +2.94%
Top Losers:
- Infosys: -1.25%
- Nestle India: -0.72%
- HDFC Life Insurance Company: -0.70%
Out of 50 Nifty stocks, 34 advanced, showcasing broad-based gains despite a few sectoral declines.
Sectoral Indices Snapshot
- Metal Index: +3.11%
- Pharma & Healthcare: +1% each
- PSU Bank Index: +1%
- Nifty Bank: +0.76%
- Financial Services: +0.62%
- Nifty IT: -0.74%
- Media: -0.04%
The day’s trading reflected selective sectoral strength, with metals and consumption-oriented sectors leading the rally.
Most Active Stocks by Volume
- Ola Electric Mobility: 104.45 crore shares
- Vodafone Idea: 45.55 crore shares
- YES BANK: 22.1 crore shares
These stocks attracted the highest trading activity on the NSE, reflecting robust investor interest.
BSE Highlights: Stocks Making Moves
- 18 stocks gained over 15%, including Sharika Enterprises, La Tim Metal & Industries, D.P. Wires, JITF Infralogistics, and SPEL Semiconductor.
- 126 stocks hit 52-week highs, such as Maruti Suzuki India, Bosch, TVS Motor Company, and FSN E-Commerce Ventures (Nykaa).
- 64 stocks hit 52-week lows, including Deepak Nitrite, Indus Towers, and Regaal Resources.
The advance-decline ratio on the BSE was 2,628 advancing vs 1,481 declining, with 161 unchanged.
Company Details: Sector-Wise Performance
The rally was particularly evident in the metals and consumer sectors.
- Metal companies witnessed significant intraday gains on supply constraints and higher global steel prices.
- Consumer-focused companies gained from expectations of lower GST rates, supporting the domestic demand narrative.
Even though IT and media sectors lagged, the broader market showed healthy participation, reflecting sustained investor optimism.
Summary: Key Takeaways
- Sensex and Nifty 50 ended the day sharply higher.
- Metal stocks led sectoral gains amid global supply cuts and strong domestic demand.
- GST rate rationalisation expectations boosted FMCG, auto, and pharma sectors.
- Positive global cues and lower volatility supported the rally.
- BSE market cap rose by ₹3 lakh crore, reflecting significant wealth creation.
September 3, 2025, highlights the resilience of Indian equities. With selective sectoral leadership and optimism surrounding domestic consumption, the market narrative is now anchored in growth-oriented expectations, offering investors a clearer picture of market momentum.
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