Mumbai, Sep 9: The Indian benchmark indices opened higher on Tuesday, with Nifty IT index leading the rally with 1.7 per cent surge in the early trade.

At 9.23 am, Sensex was up 355 points or 0.44 per cent, at 81,142 and Nifty was up 99 points or 0.40 per cent, at 24,873.

The broadcap indices stayed flat, as Nifty Midcap 100 inched up by 0.05 per cent, and the Nifty Small cap 100 dipped 0.01 per cent.

Nifty IT advanced on the back of strong gains by Infosys (up 3.35 per cent) as the company had announced that it will consider a buyback of shares along with its results next month. IT company Wipro also advanced 2.36 per cent.

Tech Mahindra, TCS, Bajaj Finserv were other major gainers in the Nifty pack. Major losers were Titan Company, Shriram Finance, ICICI Bank, Tata Consumer and Tata Motors.

Among sectoral indices, apart from Nifty IT, the top gainer, Nifty pharma (up 0.47 per cent) and Nifty Auto (up 0.21 per cent) were in green. Many other indices made marginal losses.

Analysts said that Nifty index had formed a small red candle with a long upper shadow on the daily chart, highlighting consolidation and volatility.

“While buying interest is visible at lower levels, the 24,900–25,000 zones remains a stiff hurdle. Support is placed at 24,620, and as long as Nifty trades below 25,000, some consolidation or mild weakness may persist,” they noted.

“Upside momentum vanished on test of 24,870, which we had pencilled in as a critical pivot yesterday. Though the turn lower thereof was abrupt and steep, oscillators remain accommodative towards further upsides. We will look for a close beyond the 24,730-870 for further clarity,” said Anand James, Chief Market Strategist, Geojit Investments Limited.

The US markets ended in the green zone overnight as the Dow Jones Industrial Average inched up 0.25 per cent, while the Nasdaq advanced by 0.45 per cent and the S&P 500 gained 0.21 per cent.

In the US, investors are now awaiting two key inflation reports that could determine what Federal Reserve policymakers will do at their meeting next week.

The Asian markets traded mixed in the morning session. China’s Shanghai index declined 0.35 per cent, and Shenzhen lost 1 per cent. Japan’s Nikkei was up 0.2 per cent, while Hong Kong’s Hang Seng Index added 0.82 per cent. South Korea’s Kospi inched up 1.06 per cent.

On Friday, foreign investors (FIIs/FPIs) turned net sellers with outflows worth Rs 2,170 crore of Indian equities, while domestic institutional investors (DIIs) net bought shares worth Rs 3,014 crore.

Mumbai, Sep 8: The Indian benchmark indices opened higher on Monday over the GST booster, amid tariff-related uncertainty between India and the US.

As of 9.35 am, Sensex was up 280 points or 0.35 per cent, at 80,991, and Nifty was up 84 points or 0.34 per cent, at 24,825. The broadcap indices, Nifty Midcap 100 inched up by 0.77 per cent, and the Nifty smallcap 100 inched up 0.72 per cent.

Among sectoral indices, the Nifty Auto was the top gainer, rising 1.52 per cent, followed by Nifty Metal and Nifty Realty. In the Nifty pack, Tata Steel (up 2.57 per cent), Tata Steel, Tata Motors NTPC, Hindalco and SBI were the major gainers, while losers included SBI Life Insurance, Asian Paints, Dr Reddys Labs, Titan Company and Trent.

Analysts said that on the technical front, 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, indicating buying interest at lower levels.

The GST Council has reduced rates across insurance, medicines, and daily essentials, providing significant relief to households, farmers, and industries.

“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 from Choice Broking.

Analysts said that the heightened uncertainty surrounding the US-India trade relations will continue to weigh on markets.

However, US President Donald Trump’s recent statements regarding the “special US-India ties” indicate improvement in the strained relationship.

“Rumours suggest potential restrictions on India’s IT exports, despite the fact that reciprocal tariffs have not yet affected trade in services. These concerns will continue to influence the market, which got a morale boost from the GST reforms. The euphoria from GST reform was short-lived since the market had already partly discounted the GST rate cuts,” said Dr VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.

The US markets ended in the red zone on Friday, the Dow Jones Industrial Average slipped by 0.48 per cent, while the Nasdaq declined by 0.03 per cent and the S&P 500 dipped 0.32 per cent.

The Asian markets traded mixed. China’s Shanghai index inched up 0.16 per cent, and Shenzhen added 0.18 per cent. Japan’s Nikkei was up 1.42 per cent, while Hong Kong’s Hang Seng Index added 0.36 per cent. South Korea’s Kospi inched up 0.2 per cent.

On Friday, foreign investors (FIIs/FPIs) turned net sellers with outflows worth Rs 1,304 crore of Indian equities, while domestic institutional investors (DIIs) net bought shares worth Rs 1,821 crore.

New Delhi: With the Goods and Services Tax (GST) reforms, banks expect increased credit demand across retail, MSME, and agricultural segments as incomes rise and business investment picks up.

According to Ajay Kumar Srivastava, MD and CEO, Indian Overseas Bank, the reform will create a strong effect across the economy, leading to improved cashflows for distributors and retailers, greater working capital access for small businesses, and expanded credit requirements amid rising demand.

“Overall, this decision acts as a catalyst for inclusive growth and economic transformation aligning itself to India’s vision of Viksit Bharat”, said Srivastava. This move makes taxation more transparent and easier to follow. “We expect these measures will drive an estimated growth in consumption over 8-10 per cent in the next two quarters in rural markets, particularly benefiting farmers through reduced costs on agricultural products where GST has been brought down from the 12 per cent to 5 per cent,” according to Srivastava.

The price cuts on daily essentials like dairy products, household items, and consumer durables will provide more relief and reduce the burden to the consumers. The reduced GST on vehicles, electronics, and housing materials will create demand for these segments, while making insurance policies completely tax-free will enhance financial inclusion.

According to Sanjay Agarwal, Senior Director, CareEdge Ratings, GST rate cuts result in a decrease in the final price of goods and services, which enhances consumer purchasing power and could stimulate demand across various sectors.

The impact is generally visible in the consumer durables segment. Lower GST rates on automobiles, electronics, and appliances not only make these products more affordable but also expand the addressable market to include price-sensitive consumers who were previously priced out.

“Banks could see an increase in auto loans, personal loans for electronics purchases,” he mentioned. Outstanding housing loans, vehicle loans, credit card and consumer durables account for around 16.7 per cent, 3.5 per cent, 1.6 per cent and 0.1 per cent of banking credit, respectively.