Indian benchmark indices opened higher on Monday, lifted by the GST booster even as uncertainty over tariffs between India and the United States continued to weigh on sentiment.
As of 9.35 a.m., Sensex was up 280 points, or 0.35 per cent, at 80,991, while Nifty rose 84 points, or 0.34 per cent, to 24,825. The broader indices also edged higher, with the Nifty Midcap 100 gaining 0.77 per cent and the Nifty Smallcap 100 up 0.72 per cent.
Among sectoral indices, Nifty Auto led the rally with a rise of 1.52 per cent, followed by Nifty Metal and Nifty Realty. In the Nifty pack, Tata Steel surged 2.57 per cent alongside gains in Tata Motors, NTPC, Hindalco and SBI. The laggards included SBI Life Insurance, Asian Paints, Dr Reddy’s Labs, Titan Company and Trent.
Analysts said Nifty showed resilience after last week’s sharp midweek sell-off, rebounding strongly from the 100-day EMA near 24,633. The index formed a hammer candlestick pattern on the daily chart, a signal of buying interest at lower levels.
The GST Council’s decision to reduce rates across insurance, medicines and daily essentials has provided relief to households, farmers and industries, fuelling optimism in the market.
“Key support is placed around 24,600–24,280, where the 100-day and 200-day EMAs converge. A decisive close above the 25,000 mark will be critical to confirm the next leg of upside, potentially opening the path toward the 25,500–25,675 supply zone,” said Amruta Shinde of Choice Broking.
Analysts also cautioned that uncertainty in US-India trade relations could continue to drag on market momentum. However, US President Donald Trump’s recent comments highlighting the “special US-India ties” suggest some easing of tensions.
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“Rumours suggest potential restrictions on India’s IT exports, though reciprocal tariffs have not yet impacted trade in services. These concerns will continue to influence the market, but GST reforms have given a morale boost. The euphoria, however, was partly short-lived since markets had already discounted some of the GST rate cuts,” said Dr V.K. Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.
Overseas cues remained mixed. US markets ended lower on Friday, with the Dow Jones Industrial Average slipping 0.48 per cent, Nasdaq edging down 0.03 per cent and the S&P 500 falling 0.32 per cent.
In Asia, China’s Shanghai index rose 0.16 per cent, Shenzhen added 0.18 per cent, Japan’s Nikkei jumped 1.42 per cent, Hong Kong’s Hang Seng gained 0.36 per cent and South Korea’s Kospi edged up 0.2 per cent.
On the domestic front, foreign institutional investors (FIIs/FPIs) turned net sellers on Friday, offloading Indian equities worth Rs 1,304 crore. Meanwhile, domestic institutional investors (DIIs) remained net buyers, purchasing shares worth Rs 1,821 crore.
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