On a weekly timeframe, the Nifty 50 gained 1.2%, its third hike in four weeks.
Indian markets ended flat on Friday, with the Nifty 50 edging up 0.03% to 24,741 and the Sensex slipping seven points to 80,710.76. Broader indices moved in line with the benchmarks, as the Nifty Midcap rose 0.14% while the Nifty Smallcap dipped 0.03%.
On a weekly timeframe, the Nifty 50 gained 1.2%, its third hike in four weeks. Sensex gained 1.1% during the same period. Declines in IT, FMCG, and real estate shares offset gains in auto and metal stocks
Retail sentiment for the Nifty 50 index on Stocktwits turned ‘bullish’. It was ‘neutral’ earlier this week.
Gainers and Decliners
The Nifty IT index was the top drag on Friday, falling 1.44%. Concerns over possible tariffs on IT exports rattled investors, marking the index’s fourth straight loss and seventh decline in the last eight sessions.
While Persistent Systems (-3.1%) and Mphasis (-2.15%) led the declines, index heavyweights Tata Consultancy Services (TCS) and Infosys slid 1.5% and 1.2%, respectively.
Only one of the 15 stocks on the Nifty FMCG index closed higher. Tata Consumer Products’ 0.36% gains were overshadowed by the decline in consumer goods stocks, including ITC (-1.92%), Hindustan Unilever (-1.45%), Colgate-Palmolive (-1.63%), and Dabur (-1.02%).
The sector declined on likely profit booking after gaining consecutively for the past five sessions. The FMCG index rose 2.7% during the period, as reports of a steep GST cut on consumer goods were factored in by Dalal Street before the official GST Council announcement on Thursday.
Auto stocks advanced on Friday, with Ashok Leyland, Eicher Motors, and Mahindra & Mahindra leading the gains as markets cheered GST cuts on select vehicle types.
GST on petrol, petrol-hybrid, LPG, diesel, and diesel-hybrid cars with an engine capacity of up to 1,500 cc and a length of up to 4,000 mm, CNG cars up to 1,200 cc and 4,000 mm, and motorcycles up to 350 cc, has been reduced from 28% to 18%.
Analyst Takes
Analysts predicted a range-bound session on Friday, with SEBI-registered Pradeep Carpenter flagging support for Nifty between 24,650 and 24,500, and resistance between 24,850 and 25,000, with 24,700 as a key level to hold.
The nifty traded between 24,624.50 and 24,830.25.
SEBI RA Bharat Sharma pegged support at 24,700, while a breakdown could push levels towards 24,650, 24,600, and 24,560. He expected resistance at 24,770, with a move above that opening room for 24,840, 24,920, and even 25,000.
SEBI RAs highlighted the positive impact of GST reforms on stocks linked to the consumer goods sector, both directly and indirectly.
Products such as biscuits, cornflakes, sugar confectionery, and pastries, which were previously taxed at 12% or 18% GST, will now be taxed at a rate of just 5%. This steep 7-13 percentage points cut directly reduces the tax burden on core revenue for companies like Britannia, said SEBI-registered analyst Varunkumar Patel.
GST cuts will lead to higher demand for products like televisions and washing machines, and financiers like Bajaj Finance are well-positioned to benefit from increased loan disbursal, said SEBI RA Finkhoz RoboAdvisory.
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