Indian stock market: Indian indices benchmark – Sensex and Nifty 50 – are expected to open higher on Thursday after the GST Council Meeting, which approved GST rate cut on a total of 396 items, on Wednesday late evening.
Asian markets rose on Thursday, supported by an overnight tech rally on Wall Street that boosted the S&P 500 and Nasdaq Composite, despite persistent economic concerns weighing on equities.
On Wednesday, the Indian stock market closed higher, driven by gains in banking and metal stocks, as investors awaited updates from the Goods and Services Tax (GST) Council meeting, which is expected to consider rate cuts on various products.
The NSE Nifty climbed 135.45 points, or 0.55 per cent, to close at 24,715.05, while the BSE Sensex rose 409.83 points, or 0.51 per cent, to end at 80,567.71.
“Nifty ended higher by 135 points at 24,715 (+0.6%), led by a sharp rally in metal stocks and optimism around the ongoing GST council meet. Nifty Metal index gained 3.1%, aided by China’s plans to cut steel production between 2025-26 and a weaker US dollar. Broader market mirrored upbeat sentiment, extending gains from the previous session, with Nifty Midcap100 and Smallcap100 up by 0.7% and 0.9% respectively. Investors remain focused on the outcome of the 2-day GST Council meeting amidst expectations of potential rate rationalization, which could benefit key sectors such as auto, hotels, cement, and consumer durables amongst others. On the institutional front, FII selling continued with outflows of Rs1,159cr on Tuesday. Overall, we expect the Indian markets to remain range-bound, tracking global cues and sector-specific developments with policy decisions from the GST Council serving as the immediate catalyst,” said Siddhartha Khemka – Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd.
Here are key global market cues for Sensex today:
Asian Markets
Asia-Pacific stocks advanced on Thursday, supported by an overnight tech rally on Wall Street that boosted the S&P 500 and Nasdaq Composite.
Japan’s Nikkei 225 gained 0.57 per cent in early trade, while the Topix rose 0.41 per cent. In South Korea, the Kospi climbed 0.45 per cent, and the Kosdaq jumped 0.84 per cent.
Gift Nifty Today
Gift Nifty was trading around 24,960 level, a premium of nearly 124 points from the Nifty futures’ previous close, indicating a positive start for the Indian stock market indices.
GST Council Meeting
Finance Minister Nirmala Sitharaman on Wednesday, September 3, announced major GST reforms aimed at rationalising tax rates. Several items have been moved to the nil GST category, while many goods have shifted to lower 5 per cent or 18 per cent slabs from higher rates.
The GST Council has approved a streamlined structure, reducing the existing four slabs to just two – 5 per cent and 18 per cent. Additionally, a special 40 per cent rate has been proposed for select items such as luxury cars and tobacco.
Wall Street
Overnight in the U.S., the three major indices ended mixed. The S&P 500 advanced on Wednesday, supported by gains in tech stocks after a federal court ruling in an Alphabet antitrust case lifted hopes that major tech firms could withstand regulatory challenges.
The Nasdaq Composite, heavily weighted in technology, rose 1.03% to close at 21,497.73, while the S&P 500 gained 0.51% to end at 6,448.26. In contrast, the Dow Jones Industrial Average edged down 24.58 points, or 0.05%, to finish at 45,271.23.
Trump Tariffs on India
U.S. President Donald Trump claimed that India heavily imposes tariffs on the United States but has now offered “zero tariffs,” amid rising trade tensions between New Delhi and Washington.
“I understood tariffs better than any human being in the world. And now with my tariffs, they were all dropping them. India was the most highly tariffed nation… And you know what, they’ve offered me no tariffs in India anymore. No tariffs,” Trump was quoted as saying in a radio show by PTI.
“If I didn’t have tariffs, they would never make that offer. They would never make that offer. So you have to have tariffs. We’re going to be economically strong,” Trump added.
US Treasury Yields
Global bond markets are set to remain in the spotlight as long-term borrowing costs face pressure worldwide. On Wednesday morning, the U.S. 30-year Treasury yield edged past 5% for the first time since July, following a court ruling that deemed most of the Trump administration’s tariffs illegal, casting uncertainty over the future of tariff revenues.
Japan’s Bond Yield
Japan’s 30-year bond yield hit an all-time high on Wednesday, marking a 100 basis point increase this year, fueled by elevated inflation, low real interest rates, and political uncertainty.
Gold Prices
Gold continued its record-setting surge on Wednesday, driven by weaker U.S. employment data that strengthened expectations of a Federal Reserve rate cut later this month. Ongoing global uncertainties also sustained strong safe-haven demand.
Spot gold rose 1.2 per cent to $3,576.59 per ounce by 2:25 p.m. EDT (1825 GMT), after touching an all-time high of $3,578.50, while U.S. gold futures climbed 1.2 per cent to $3,635.50.
Dollar
The U.S. dollar eased on Thursday during a turbulent week as investors grappled with bond market fluctuations and assessed data indicating a weakening labour market, strengthening expectations of a Federal Reserve rate cut this month.
With the Fed closely monitoring employment trends, Friday’s key jobs report is expected to shape the near-term rate outlook, following Wednesday’s data that showed job openings dropped to a 10-month low in July, while layoffs stayed relatively modest.
Crude Oil Prices
Oil prices continued to fall on Thursday, adding to a decline of over 2% in the previous session, as investors and traders awaited the upcoming OPEC+ meeting this weekend, where producers are expected to discuss another potential hike in output targets.
Brent crude dropped 27 cents, or 0.40%, to $67.33 a barrel at 0114 GMT, while U.S. West Texas Intermediate (WTI) slipped 28 cents, or 0.44%, to $63.69 a barrel.