The Indian equity market began the day with a burst of optimism around GST reforms, but that sentiment wavered as the session progressed amid global uncertainties and persistent concerns over U.S. trade tariffs and the Federal Reserve’s policy outlook. The BSE Sensex closed at 80,718 after shedding nearly 739 points from the day’s high, while the NSE Nifty retreated 247 points from its intraday peak to settle at 24,734.

In early trade, the Sensex gained as much as 889 points, or 1.1%, to hit an intraday high of 81,456.67, while the Nifty rose 266 points, or 1.07%, to touch the day’s high of 24,980.75. However, the market lost momentum by mid-session, as GST measures failed to excite Dalal Street and investors found limited immediate relief for businesses. Finally, the Sensex ended 150 points higher, while the Nifty managed to close marginally up by 19 points.

Broader markets, however, bucked the trend, with the Nifty Midcap 100 index falling 0.67% and the Nifty SmallCap 100 index ending 0.71% lower.

Overall, the move is seen as an administrative improvement rather than a near-term catalyst, he added.

The BSE Sensex saw mixed trend, with 11 out of 30 stocks ended in positive terrain, led by auto heavyweight Mahindra and Mahindra, which surged 6% to emerge as the day’s star performer. It was closely followed by Bajaj Finance, which climbed more than 4%, while Bajaj Finserv also added close to 2%. Trent, ITC, and HDFC Bank lent further strength with gains over 1%, supported by modest advances in ICICI Bank, Asian Paints, Hindustan Unilever, and Sun Pharma.

On the other hand, Maruti Suzuki, the country’s most valued auto stock, was the biggest loser, slipping nearly 2%, while BEL, HCL Tech, NTPC, Power Grid, and Infosys also registered declines of over 1%. Reliance Industries, Tata Motors, and Tata Steel added pressure with moderate losses, and banking counters like Kotak Bank, Axis Bank, and SBI also slipped into the red.

On the sectoral front, Nifty auto, financials, and FMCG led the advance, while IT, energy, and realty were the top laggards, dragging the broader market sentiment.

Khushi Mistry, Research Analyst at Bonanza, opined that the GST revamp failed to sustain cheer on Dalal Street because, while lower rates boosted initial optimism and key consumer sectors, the reforms arrived late and unevenly benefited industries.

“Many investors saw the reforms as overdue, and broad-based optimism faded as sectoral winners and losers became clear, limiting the lasting impact on the stock market,” Mistry said.

Ajit Mishra – SVP, Research, Religare Broking said the broader outlook stays vulnerable to global macro uncertainties, continued FII outflows, and persistent U.S. tariff headwinds. In the near term, consolidation in the benchmark index cannot be ruled out. He recommended investors to maintain selective exposure to structurally strong themes while keeping a close eye on the risk–reward equation.

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