The positive sentiment was largely fueled by robust Q1 GDP data, easing concerns around US tariffs following a court ruling, optimism over geopolitical engagements at the SCO Summit, and expectations of upcoming GST reforms
Shrikant Chouhan,
Head Equity Research,
Kotak Securities
Mumbai, September 1, 2025: Today, the benchmark indices bounced back sharply, with the Nifty ends 198 points higher and the Sensex up by 555 points. Among sectors, almost all the major sectoral indices traded in positive territory, but the Capital Market and Auto indices outperformed, Capital Market 3.30 , Auto up by 2.75 percent. Technically, after a muted open, the market maintained positive momentum throughout the day. On intraday charts, it formed a reversal pattern, and on daily charts, it created a bullish candle, indicating a continuation of the pullback formation in the near future.
For traders now, as long as the market trades above 24,500/80,000, the pullback formation is likely to continue. On the higher side, it could bounce back to the 20-day SMA (Simple Moving Average) or 24,700/80,500. Further upside may also continue, potentially lifting the market up to 24,800/80,800. On the flip side, if the market falls below 24,500/80,000, traders may prefer to exit their long positions.
Gaurav Garg, Lemonn Markets Desk, adds:
Indian equity markets extended their losing streak for the second straight session on August 28, with benchmark indices ending deep in the red amid broad-based selling pressure. The Nifty 50 Indian equities staged a strong rebound on September 1, with the Sensex climbing 555 points to close at 80,364.49 and the Nifty 50 surging nearly 200 points to end above 24,600, snapping a three-day losing streak. The rally was broad-based, with midcap and smallcap indices gaining up to 2 percent and most sectoral indices trading higher, led by IT stocks. The positive sentiment was largely fueled by robust Q1 GDP data, easing concerns around US tariffs following a court ruling, optimism over geopolitical engagements at the SCO Summit, and expectations of upcoming GST reforms.
The Indian economy expanded 7.8 percent in April–June FY26, its fastest pace in five quarters, well above both RBI and street projections. This reinforced confidence in India’s growth resilience despite global uncertainties. At the same time, easing tensions between India and China, along with PM Modi’s meetings with Xi Jinping and Vladimir Putin at the SCO Summit, provided a geopolitical tailwind, especially after the shock of Trump’s tariff hikes. Further relief came from a US appeals court ruling most of Trump’s tariffs illegal, which, while temporarily still in effect, raised hopes of reversal. On the sectoral front, IT stocks gained momentum on the back of Morgan Stanley’s positive outlook on Mphasis and the expectation of a possible US Fed rate cut in September, which improves foreign fund flows to emerging markets. Meanwhile, investors also turned to value buying after last week’s correction, aided by lower volatility, with India VIX slipping 4 percent to 11.29.
