Optimism around GST Council deliberations on consumption-boosting tax cuts also lifted FMCG, autos and durables
Gaurav Garg,
Lemonn Markets Desk
Mumbai, September 3, 2025: Markets staged a sharp recovery with the Sensex rebounding nearly 600 points from day’s lows and Nifty reclaiming 24,700, powered by a strong rally in metal stocks. Tata Steel, SAIL, Jindal Steel and Hindustan Copper led the charge as China’s supply curbs and a weaker dollar boosted sentiment. Optimism around GST Council deliberations on consumption-boosting tax cuts also lifted FMCG, autos and durables, while easing India VIX signalled lower volatility. With GDP growth robust at 7.8% and GST 2.0 reforms on the horizon, investors are betting on a broad-based demand revival, though global trade and tariff risks remain a watchpoint.
Shrikant Chouhan, Head Equity Research, Kotak Securities, adds:
Today, the benchmark indices bounced back sharply, with the Nifty ends 135 points higher and the Sensex up by 410 points. Among sectors, the Metal Index outperformed, rallied 3.10 percent, whereas despite strong market momentum, intraday profit booking was seen in selective IT stocks.
Technically, after a muted open once again, the market took support near 24,500/80,000 and bounced back sharply. On daily charts, it has formed a bullish candle, and on intraday charts, it is holding an uptrend continuation pattern, which is largely positive.
For the bulls now, 24,750/80,700 would be the immediate resistance zone. A successful breakout above 24,750/80,700 could push the market towards 24,850–24,900 /81,000–81,200. On the flip side, 24,600/80,200 and 24,500/80,000 would be key support zones for traders. However, below 24,500/80,000, the uptrend would become vulnerable. If the market falls below this level, traders may prefer to exit their long positions.
