Benchmark indices opened flat to marginally negative on Wednesday morning as investors awaited cues from the crucial two-day Council meeting beginning today and key global economic data later this week. The opened at 80,295.99 against previous close of 80,157.88 but quickly slipped to 80,052.34, down 105.54 points or 0.13 per cent. The Nifty 50 opened at 24,616.50 versus Monday’s close of 24,579.60 before declining to 24,552.45, losing 27.15 points or 0.11 per cent at 9.40 am.
Metal stocks emerged as the top performers in early trade, with Hindalco leading gains at ₹734.95, up 1.94 per cent, followed by Tata Steel at ₹161.28, rising 1.82 per cent, and JSW Steel at ₹1,057.60, gaining 1.30 per cent. Cipla and BEL also featured among the gainers, advancing 0.99 per cent and 0.69 per cent respectively.
On the losing side, IT major Infosys declined 1.09 per cent to ₹1,482.40, while life insurance stocks faced selling pressure with HDFC Life down 1.00 per cent at ₹774.95 and SBI Life falling 0.69 per cent to ₹1,801.90. Tata Consumer Products and Hero MotoCorp also traded in the red, dropping 0.91 per cent and 0.72 per cent respectively.
The Centre is pushing for a simplified GST structure with just two slabs of 5 per cent and 18 per cent, alongside a 40 per cent rate for sin and demerit goods, which analysts believe could be a significant catalyst for consumption-led sectors. “If implemented, this could be a game-changer for consumption-led sectors,” said Hariprasad K, SEBI-registered Research Analyst and Founder of Livelong Wealth. FMCG names have already rallied for three consecutive sessions on expectations of lower tax burdens and improved pricing power.
Market technicals suggest continued volatility ahead. “Nifty 50 now faces immediate resistance at 24,600, with support placed at 24,550 and 24,430,” noted Hariprasad K. “Sustaining above 24,734 is crucial for any bullish reversal, while a rejection near 24,600 could open the door for deeper downside.”
Global factors continue to weigh on sentiment as Wall Street kicked off September on a weak note with bond yields spiking amid fiscal concerns. “With global uncertainty on the rise, the market also is going to experience high volatility,” said Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited. He highlighted concerns over the likelihood of 25 per cent penal tariffs imposed on India getting withdrawn becoming difficult since India has refused to accept recent policy dictates.
However, positive domestic fundamentals provide some support. The Q1 GDP growth number at 7.8 per cent indicates strong growth momentum in the economy. “This will get accelerated by the coming reforms in GST. The net result of all these can be an upward revision in the earnings growth for FY26 and FY27,” Vijayakumar added.
Foreign institutional investors turned net sellers, offloading equities worth ₹1,171.04 crore, while domestic institutional investors provided support with net buying of ₹2,433.82 crore. However, Choice Equity’s data showed FIIs as net buyers with inflows worth ₹512.67 crore, while DIIs added ₹2,118.45 crore in the previous session.
Gold continued its stellar run, hitting fresh lifetime highs both internationally and domestically as investors sought safe-haven assets. “Gold prices are holding near record highs after a six-day rally, as investors turn to safe-haven assets amid a broad sell-off in equity and bond markets,” said Darshan Desai, CEO of Aspect Bullion & Refinery. Growing fiscal concerns in major economies including the US, UK and France are driving increased demand for the precious metal.
Crude oil prices also gained momentum, hitting one-month highs after the US imposed sanctions on Iranian and Russian oil, tightening global supply. Better-than-expected Chinese factory data raised hopes of stronger demand ahead.
Market participants remain cautious ahead of key events including the US jobs report on Friday, which could guide expectations for Federal Reserve rate cuts. “Investors should stay invested and slowly accumulate high quality, fairly valued stocks,” advised Vijayakumar, suggesting volatile days ahead but maintaining optimism about underlying fundamentals.