Indian Markets At Close: Profit Booking Drags Nifty Below 24,800 Despite GST Booster

A two-slab GST structure lifted auto and FMCG counters, but weak broader markets and profit-taking erased early gains. Retail investor sentiment shifted from bearish to bullish on the Nifty.

Indian equity markets pared morning gains but ended in the green. The benchmarks rose nearly 1% in early trade after the goods and services tax (GST) council announced sweeping reforms and a two-slab rate structure of 5% and 18%. This sparked a strong rally in auto and FMCG stocks

On Thursday, the Sensex closed 150 points higher at 80,718, while the Nifty 50 ended up 19 points at 24,734. Broader markets underperformed, with the Nifty Midcap and Smallcap indices falling 0.7%.

And the retail investor sentiment surrounding the Nifty 50 moved from ‘bearish’ to ‘bullish’ by market close on Stocktwits.

Stock Moves

Sectorally, barring auto, FMCG, and select financials, rest of the indices ended in the red after profit booking dragged the markets lower in the second half of the trade. 

The auto sector ended with 0.8% gains, with M&M (+6%) leading the gains as the GST Council approved reducing tax on small cars to 18% from 28%. FMCG gained as everyday essentials like packaged food, toothpaste, milk products, and personal care items will now attract only 5% GST, down from the earlier 12–18%. Colgate, Britannia, Dabur, Nestle rose between 3% and 2%. 

Insurance companies erased their gains on concerns that costs will rise without the inverted duty structure benefits. HDFC Life, ICICI Life, Niva Bupa, Star Health, Max Financial ended between 2% and 3% lower.

Varun Beverages fell 3% after GST on carbonated drinks was hiked from 28% to 40%.

Swiggy ended nearly 2% lower after increasing its platform fee to ₹15 per order, marking the third hike in three weeks and its steepest to date.

Shares of Solar Industries fell 2% after the company reported an explosion at its crystallization building in Nagpur, Maharashtra.

Markets: What Next?

Globally, European markets traded mixed, while US stock futures indicate a subdued start on Wall Street. 

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