Indian markets are expected to open on a flat note on Tuesday, amid robust GST collections and positive global market cues. Gift Nifty at 24,747 signals a flat opening as analysts expect the consolidation phase to continue. The focus has shifted to the outcome of the GST Council meeting. All eyes are on the much-awaited two-day 56th GST Council meeting, which begins on September 3, and is likely to announce path-breaking reforms. Analysts will be keenly analysing which sector is expected to benefit the most.
Meanwhile, August GST collection remained robust. Aditi Nayar, Chief Economist, ICR, said, “While CGST and SGST recorded a double-digit expansion, the growth in IGST and cess collections was tepid, dampening the headline GST increase to 6.5%. Low inflation readings for the WPI and the CPI may partly be dampening the GST growth. The contraction in IGST on imports is puzzling in light of the sharp increase in merchandise imports in July 2025 (that would have been reflected in the August 2025 GST data).”
Hariprasad K, SEBI-registered Research Analyst and Founder – Livelong Wealth.
Gift Nifty is indicating a positive opening this morning. Notably, today also marks the first Tuesday of the week for Nifty options contracts to expire.
“Volatility cooled off sharply yesterday with India VIX slipping over 3%, easing sentiment. Yesterday’s rally was driven by a better-than-expected GDP growth print of 7.8% for Q1 (April–June), reinforcing optimism around India’s growth trajectory. IT stocks led the charge, gaining from the rupee hitting fresh lows against the dollar. Global cues also provided relief, as a US court declared most of President Trump’s tariffs illegal, though they remain effective until October 14 pending a Supreme Court review,” he said.
FIIs sell ₹1,430 cr; DIIs buy ₹4,345 cr
According to him, Flows, however, continue to show divergence. FIIs sold ₹1,430 crore worth of equities on Monday, while DIIs provided strong support with net buys of ₹4,345 crore. For 2025 so far, FIIs have remained net sellers at ₹2.11 lakh crore, while DIIs have absorbed much of this, with net purchases of ₹5.07 lakh crore.
Trends from F&O trading also present a positive picture.
Dhupesh Dhameja, Derivatives Research Analyst, SAMCO Securities, said: The Options market reflected improving sentiment as put writers aggressively rolled positions into the weekly expiry. Significant call writing was observed at the 25,000 strike, where open interest surged to 1.86 crore contracts, cementing it as a formidable resistance ceiling. Conversely, the 24,500 strike attracted the highest put open interest of 2.09 crore contracts, reaffirming it as immediate support.
“Notably, the migration of call writing to higher strikes signals strengthening confidence in a sustained upside, while aggressive put additions at near the money indicate firm bullish undertones,” he added.
Put-Call ratio rises, signaling bullish undertones
The Put-Call Ratio (PCR) rose sharply from 0.54 to 1.12, highlighting growing buying interest. However, confirmation from price action remains essential, he further said.
India VIX slipped 3.91% to 11.62. The steady decline in volatility signals a consolidation phase rather than a panic-driven selloff. The muted VIX reflects cautious optimism, with market participants showing little urgency for heavy hedging.
Equities across the Asia-Pacific region are up marginally in early trade on Tuesday.
The setup now favours consolidation in the benchmark after the recent decline, though underlying concerns remain, said Ajit Mishra, SVP, Research, Religare Broking Ltd. “Despite India’s robust real GDP growth, persistent foreign fund outflows and export-related challenges amid tariff headwinds could keep participants cautious. In this backdrop, we recommend focusing on sectors and themes showing relative strength—such as auto, FMCG, and consumer durables, particularly consumer-facing segments—for long trades, while staying selective in others,” he advised.