Stock Market Today: Indian equity benchmarks opened higher on Monday, supported by firm global cues, optimism over potential improvement in US-India relations under the Trump and Modi administrations, and strong buying in auto and metal shares.
At 10:44 am, the BSE Sensex traded at 80,882.84, up 172.08 points or 0.21%, while the Nifty 50 was at 24,805.10, gaining 62.65 points or 0.25%.
Broader indices mirrored the upbeat sentiment, with the Nifty 100, Nifty Midcap 100, and Nifty Smallcap 100 all advancing between 0.26% and 0.34% in early trade.
Auto Stocks Shine on GST Rate Cut Hopes
The government’s recent GST rate cut announcement provided a strong boost to the auto sector. The Nifty Auto index surged 2.14% to 26,883.70, making it the top-performing sector of the day.
Major gainers included Bharat Forge (+5.60%), Ashok Leyland (+4.75%), and Tata Motors (+3.25%). Investors expect that lower GST rates will translate into higher demand for cars, two-wheelers, and auto components ahead of the festive season.
Other auto majors such as M&M (+2.29%), Hero MotoCorp (+2.17%), Bajaj Auto (+2.10%), TVS Motor (+1.86%), and Maruti (+1.07%) also advanced. On the BSE, the Auto index jumped nearly 2% to 60,043.18, reflecting broad-based optimism.
Metal Sector Rallies After Brokerage Upgrade
Metal shares also extended gains after Morgan Stanley raised target prices for key steel producers, citing an improving demand outlook and expectations of firm domestic steel prices. The Nifty Metal index advanced 1.21% to 9,798.90, while the BSE Metal index climbed 1.17% to 32,541.69.
Top performers included SAIL (+4.26%), Tata Steel (+2.49%), and JSW Steel (+2.38%). Other stocks such as Jindal Steel (+1.62%), Adani Enterprises (+1.74%), and Hindalco (+0.04%) also contributed to the sector’s rise. However, Vedanta slipped 1.89%, trimming some of the gains.
Expert Views
Market experts pointed out that a combination of domestic and global triggers is driving investor sentiment.
Ajay Bagga, banking and market expert, told ANI, “Hopes for improvement in Trump admin and Modi government relations are the dominant theme today. There are plenty of global cues impacting markets. The subdued US jobs report makes a rate cut by the Fed on Sep 17 a certainty. There is a growing call for a jumbo rate cut of 50 bps.”
On the technical front, Sunil Gurjar, SEBI-registered analyst and Founder of Alphamojo Financial Services, said the Nifty 50 continues to display resilience.
“The Nifty 50 performed well last week, surging by 314 points. Technically, the price is trading below all short-term moving averages, which signals potential short-term weakness. The 25,300 level is acting as strong resistance, and a breakout above it would confirm a continuation of the uptrend.”
Global Market Cues
Global developments also influenced investor mood. A subdued US jobs report increased the likelihood of a US Federal Reserve rate cut on September 17, with growing calls for a larger 50-basis point reduction.
In Japan, Prime Minister Ishiba stepped down over pressure linked to an unpopular US trade deal, leading to a rally in Japanese equities and a weaker yen.
Across Asia, markets traded higher. Japan’s Nikkei 225 gained more than 1.5%, Hong Kong’s Hang Seng rose 0.32%, South Korea’s KOSPI advanced 0.2%, and Taiwan’s Weighted Index added 0.41%.
Singapore’s Straits Times, however, slipped marginally by 0.05%.