Stock Market Today: Sensex at 81,456, Nifty 50 Climbs 135 pts

With Nifty eyeing the 25,000 mark, investor sentiment stays firmly bullish

The Indian stock market ends the day with strong gains, lifted by sweeping changes in Goods and Services Tax (GST) rates, sectoral strength, and supportive global cues. Both benchmark indices show impressive recovery, building confidence among investors ahead of the festive season.

Benchmark Indices Show Strong Momentum

The day begins with a positive opening. The Nifty 50 trades above 24,850 while the Sensex rises strongly in the early session. By 9:15 a.m., the Nifty 50 climbs around 1.08 percent to 24,980.75, and the Sensex gains nearly 1.1 percent to 81,456.67.

As the session progresses, the upward momentum continues. The Sensex rallies by 400 to 700 points during intraday trade, while the Nifty crosses the crucial 24,900 mark. By the closing bell, the Nifty 50 settles at 24,715, higher by 135 points or 0.55 percent. The Sensex ends the day with a gain of about 410 points, rising around 0.5 percent. These levels reflect a firm close for both indices, highlighting the strength of the day’s rally.

GST Reforms Provide the Key Trigger

The biggest driver of today’s rally is the landmark decision by the GST Council. A new two-tier structure is introduced, cutting tax rates on several essential goods and services. The revised rates will take effect from September 22.

This step is designed to boost domestic consumption by lowering the tax burden on households and businesses. Analysts expect the move to stimulate demand, particularly in the upcoming festive season. Research houses such as Jefferies suggest that this could also help accelerate India’s GDP growth in the coming quarters. The market response confirms the positive outlook, with investors actively buying stocks that are likely to benefit from increased consumer spending.

Sectoral Performance and Key Movers

Sectors such as automobiles, fast-moving consumer goods (FMCG), and cement lead the rally. Automobile stocks attract strong buying interest, with Mahindra & Mahindra rising by nearly 6 percent and Eicher Motors climbing around 3 percent. These gains reflect expectations of stronger vehicle sales, as lower taxes increase disposable income for buyers.

Consumer staples also perform well. Companies such as Britannia, Colgate, and Nestle see their shares rise between 2 percent and 6 percent. These businesses are direct beneficiaries of higher household spending, making them market favorites during tax-driven consumption upswings.

Interestingly, tobacco stocks also post gains despite a GST increase on tobacco to 40 percent. ITC and Godfrey Phillips advance by about 2 percent each, indicating resilience in demand and confidence in strong pricing power.

Banking, metals, mid-caps, and small-caps join the rally. The BSE Midcap and Smallcap indices climb by 0.5 percent each. Auto, FMCG, and consumer durables indices stand out with robust growth of 1.5 percent to 2 percent. The broad-based participation signals that optimism is not limited to a few sectors but spreads across the market.

Technical Picture of the Market

From a technical standpoint, the Nifty shows support around its 9-day Exponential Moving Average (EMA) and 20-day Simple Moving Average (SMA). This indicates that the short-term trend remains in recovery mode.

Analysts identify the 24,750 to 24,800 range as a near-term resistance zone. A clear breakout above 24,800 could open the door for the index to target the 25,000 level. On the derivatives side, GIFT Nifty futures trade higher by 100 to 150 points, signaling that traders expect the bullish sentiment to continue in the next session.

The overall setup is also supported by global cues. A softer US dollar, strong global equities, and stable commodity prices contribute to the positive outlook.

Developments Beyond GST

While GST reforms dominate headlines, other developments also shape the market mood. One of the biggest stories is the legal battle involving Jane Street, a US high-frequency trading firm. The company appeals against a Securities and Exchange Board of India (SEBI) ban related to alleged market manipulation in cash and futures trades linked to the Bank Nifty. This case adds regulatory focus to the trading environment in India.

On the corporate side, Maruti Suzuki continues to attract attention. The company’s stock trades close to its 52-week high, reflecting its strong performance in the automobile sector and investor confidence in its growth outlook.

Broader Reflections on the Day

The market action today highlights how major policy changes can quickly shift sentiment. The GST Council’s announcement acts as the central driver, sparking a wave of optimism across multiple sectors. Automobiles, consumer staples, and durables gain the most as investors price in stronger demand during the festive season.

The rally in mid-caps and small-caps adds breadth to the market, showing that participation is widespread. The gains in tobacco and cement stocks further underline the resilience of Indian equities, even in the face of higher tax rates for select products.

The technical indicators suggest that the uptrend can continue if the Nifty sustains above 24,800. The psychological 25,000 mark is the next target that traders and investors are watching closely. With supportive global trends and domestic policy tailwinds, the market outlook remains cautiously optimistic.

Final Thoughts

The Indian stock market ends the day on a strong note, driven by tax reforms, sectoral leadership, and improved investor confidence. The Sensex rises by about 410 points to close at 81,456, while the Nifty climbs by 135 points to end at 24,715. GST cuts provide the central boost, with auto and FMCG stocks leading the way.

As the festive season approaches, the market is expected to remain focused on consumption trends, sectoral strength, and global signals. The immediate test lies at the 24,800 resistance level on the Nifty, with a potential rally toward 25,000 if momentum holds. Overall, today’s developments mark an important step in strengthening market sentiment and reinforcing optimism in India’s growth story.