The Market Outlook

NiftyBank rises 8 points to 54,075 while Midcap index slips 386 Pts to 56,959 Insurance Cos erase gains on no inverted duty gains, #HDFCLife top loser Paytm is amongst top #Midcap losers, falls 3% with healthy volumes #VarunBeverages falls 3% #GST on aerated drinks increased to 40% #Midcap underperformance turns market breadth in favour of declines

| GST revamp promises monthly savings for households, cheaper cars ahead

GHV Infra Projects is rising as it bags a letter of intent (LoI) worth Rs 120 crore from GHV (India) for engineering, construction and redevelopment of South Eastern Railway's station in Jharkhand. FMCG stocks like Britannia, Colgate-Palmolive, Dabur, and Nestle India are surging after the GST Council cuts tax on essential goods from 12–18% to 5%, effective September 22. Poly Medicure is rising as its board of directors approves the acquisition of a 90% stake in PendraCare Group for Rs 188.5 crore through its Dutch subsidiary, RisoR Holdings BV. B Thiagarajan, MD of Blue Star, expects festive season sales to grow by 30%, up from the earlier estimate of 15–20%, driven by the GST rate cut to 18% on electronics. He adds that the company will pass down the benefit to consumers and believes the industry can achieve 20% growth in FY26 following rate rationalisation. SPML Infra is rising as it appoints Abhinandan Sethi as Managing Director for five years, effective September 3. Bharat Heavy Electricals rises as it bags a letter of intent (LoI) worth Rs 2,600 crore from MB Power (Madhya Pradesh) to supply equipment, including boiler, turbine, and generator for an 800 MW power project in the state. Force Motors' August wholesales grow 4.5% YoY to 2,403 units, driven by a 6.6% YoY increase in domestic wholesales. However, exports decline 26% YoY to 108 units. Aptus Value Housing Finance is rising as reports emerge that WestBridge Capital plans to sell its entire 16.5% stake (or 8.2 crore shares) for Rs 2,600 crore at a price of Rs 316 per share through a block deal. Markets rise on early trading, Nifty 50 was trading at 24,873.10 (158.1, 0.6%), BSE Sensex was trading at 81,456.67 (889.0, 1.1%), while the broader Nifty 500 was trading at 23,001.90 (137.3, 0.6%). Market breadth is ticking up strongly. Of the 2,087 stocks traded today, 1,689 showed gains, and 353 showed losses. Riding High: Largecap and midcap gainers today include Mahindra & Mahindra Ltd. (3,483.90, 6.0%), Bajaj Finance Ltd. (935.90, 4.4%) and Jubilant Foodworks Ltd. (658.50, 3.7%). Downers: Largecap and midcap losers today include Max Financial Services Ltd. (1,570, -2.9%), Coromandel International Ltd. (2,288.30, -2.8%) and Lloyds Metals & Energy Ltd. (1,303, -2.5%). Volume Rockets 20 stocks in BSE 500 are trading on high volumes today. Top high volume gainers on BSE included DOMS Industries Ltd. (2,722.20, 8.7%), Bata India Ltd. (1,242, 6.9%) and Gillette India Ltd. (10,609, 4.8%). Top high volume losers on BSE were HDFC Life Insurance Company Ltd. (762.95, -1.7%), Brainbees Solutions Ltd. (356.25, -1.7%) and Star Health and Allied Insurance Company Ltd. (450.60, -0.3%). Aptus Value Housing Finance India Ltd. (334.90, 0.8%) was trading at 28.2 times of weekly average. Escorts Kubota Ltd. (3,793.20, 3.2%) and Sapphire Foods India Ltd. (329.45, 2.0%) were trading with volumes 16.9 and 16.7 times weekly average respectively on BSE at the time of posting this article. BSE 500: highs, lows and moving averages 19 stocks took off, crossing 52 week highs, Stocks touching their year highs included - Cummins India Ltd. (3,943.40, 1.5%), Eicher Motors Ltd. (6,466.50, 1.5%) and L&T Finance Ltd. (230.12, 1.3%). 27 stocks climbed above their 200 day SMA including DOMS Industries Ltd. (2,722.20, 8.7%) and ICICI Lombard General Insurance Company Ltd. (1,870, 2.6%). 7 stocks slipped below their 200 SMA including Mastek Ltd. (2,503.30, -2.9%) and Tata Power Company Ltd. (383.60, -1.4%).

Market trades higher, MosChip Technologies surges as PM Modi announces that work is underway for ISM 2.0 Nifty 50 was trading at 24,817.35 (102.3, 0.4%), BSE Sensex was trading at 80,962.64 (394.9, 0.5%) while the broader Nifty 500 was trading at 22,900.05 (35.4, 0.2%). Market breadth is in the red. Of the 2,512 stocks traded today, 1,104 were on the uptick, and 1,359 were down. Nifty 50 opens higher as GST Council cuts tax slabs to 5% and 18%, adds 40% rate on sin goods. On Wednesday, Indian indices closed higher after extending gains in the afternoon session. FIIs sold equity worth Rs 1,666.5 crore, while DIIs bought equity worth Rs 2,495.3 crore in Indian markets on the same day. Nifty Midcap 100 and Nifty Smallcap 100 open higher, tracking the benchmark index. Nifty FMCG and Nifty Auto indices open higher. Major US indices closed mixed on Wednesday. European indices closed higher, except for Portugal’s PSI. Asian indices are trading mixed. Meanwhile, US job openings fell to a 10-month low in July and unemployment rose to 4.2%, pointing to a weaker labor market. The data has strengthened expectations of a Federal Reserve rate cut in September. Relative strength index (RSI) indicates that stocks like Maruti Suzuki, Eicher Motors, Ola Electric Mobility and HBL Power Systems are in the overbought zone. Prestige Estates Projects is falling as its subsidiary, Prestige Office Ventures, receives a show cause notice worth Rs 160.8 crore from the Goods & Services Tax Intelligence (GSTI), Hyderabad, for non-payment of GST during FY21-24. Bajaj Finance and Bajaj Finserv rise after the government cuts GST on key consumer durables from 28% to 18%. The reduction covers air conditioners, TVs above 32 inches, monitors, and dishwashers, boosting retail demand and benefiting consumer finance companies. Rolex Rings is rising as its board of directors approves a 10-for-1 stock split. According to data from the Department for Promotion of Industry and Internal Trade (DPIIT), foreign direct investment (FDI) in India rose 15% to $18.6 billion in Q1FY26, with the US emerging as the top investor. FDI inflows from the US surged to $5.6 billion, up from $1.5 billion a year earlier. Singapore and Mauritius followed as the next largest sources of investment. Emkay maintains its 'Buy' call on ICICI Bank, with a higher target price of Rs 1,700 per share. This indicates a potential upside of 20.4%. The brokerage believes that the lender is well-positioned for net interest income (NII) growth, driven by better cost management, core fees, and improvement in asset quality. It expects the bank's NII to grow at a CAGR of 12.4% over FY26-28. Stationery stocks like DOMS Industries and Flair Writing are rising as the GST council cuts tax on items such as pencils, sharpeners and crayons to zero from 12%. Varun Beverages falls after the GST Council approves a hike in tax rates. Carbonated and caffeinated drinks will now attract a 40% GST, up from 28%. The GST on other non-alcoholic beverages will also rise to 40% from 18%. ICRA believes that the hike in GST on oil and gas exploration, development, and production, from 12% to 18%, will raise costs for upstream companies already hit by falling crude prices. Prashant Vasisht, Senior VP at ICRA, notes that with oil and gas prices declining since April 2025 due to global headwinds and OPEC+ production increases, realisations for these companies have already weakened.

| Check out the #fundflow activity for Sept 4👇

US initial jobless claims for the week ended August 30 at 2.37 lakh vs 2.29 lakh in the previous week

🚀RBI moves money market holiday to September 8 from September 5