The equity markets managed to snap out of their two-week-long losing streak as the the BSE Sensex surged 901.11 points, or 1.11%, while the NSE Nifty 50 added 314.15 points, or 1.3%. Friday’s session was a tumultuous ride for investors as the benchmark indices opened higher, faced heavy selling, yet they recovered in the final hours.

The major gainer for the week was Mahindra & Mahindra, which advanced by 11.3%. It was followed by Tata Steel, which rose by 8.5%. This was followed by Eicher Motors (7.8%), and Bajaj Finance (6.8%). 

The top laggards this week were IT stocks, with heavyweights Infosys and TCS falling by 3.50% and 2.22%, respectively. Midcap IT stocks such as Coforge and Persistent dragged the Nifty IT index down, falling by 5.58% and 3.07%, respectively. As the Indian IT sector earns most of its revenues from the US, recent reports on the softened American job market highlighted concerns about economic growth, thereby impacting Indian IT companies. 

Speaking of sectoral indices, Nifty Metal gained 5.5%, while Nifty Auto gained 5.2%. Nifty FMCG, which had rallied for five consecutive sessions, saw profit booking in Friday’s session, thereby leading to a decline. The rally in metal stocks was driven by optimism over China’s plan to reduce steel production between 2025 and 2026. GST reduction on smaller cars and two-wheelers led to investors cheering the news that boosted the auto stocks. 

The markets reacted positively to the GST Council’s new taxation reforms, which were aimed at boosting consumer demand, with several ministries assuring that these reforms would also promote production in various sectors. These reforms would be effective from September 22, 2025, which marks the first day of Navratri. 

The Council revamped the four-slab structure of 5%, 12%, 18%, and 28% to a simpler two-slab one of 5% and 18%, which brought down or nullified taxes on more than 360 products. Most of these products are essential and personal-use items, such as toiletries, food items, and even televisions and automobiles. An additional special 40% rate on luxury and sin goods like tobacco and tobacco-based items would also be implemented. 

On the global front, while concerns were looming around US-India ties because of the 50% tariffs imposed on Indian imports, Asian markets reflected positive sentiment as US President Donald Trump signed orders to reduce tariffs on Japanese automobiles. The markets also tracked cues of the weakened US job market, which strengthened their bets on the US Fed trimming interest rates.  

News from today’s early hours about US President Donald Trump talking about a “special relationship” with India, with Prime Minister Narendra Modi acknowledging his remarks, could bolster an uptick in the upcoming trading sessions.