Markets staged a remarkable second-half recovery on Wednesday, with the Sensex surging over 550 points from its session low to close at 80,567.71, gaining 409.83 points or 0.51 per cent, while the Nifty reclaimed the crucial 24,700-mark to end at 24,715.05, up 135.45 points or 0.55 per cent.
The turnaround came after a tepid start to the trading session, with metal stocks leading the charge as Tata Steel emerged as the top gainer, soaring 5.96 per cent to ₹167.83. The steel major’s rally was accompanied by strong gains across the metal pack, with Hindalco advancing 3.02 per cent to ₹742.70 and JSW Steel climbing 2.94 per cent to ₹1,074.70.
“The metal pack extended its winning streak for the third straight session, outperforming broader indices. Tata Steel and Jindal Steel & Power led the charge, rallying 6 per cent and 5.5 per cent, respectively, buoyed by tightening supply cues from China and a softening US dollar, which improves global pricing power,” noted Bajaj Broking in its market commentary.
Coal India joined the metal rally, gaining 2.45 per cent to ₹389.40, while IndusInd Bank rounded out the top five gainers with a 2.21 per cent increase to ₹767.80. The banking sector’s performance was mixed but showed signs of recovery, with the Nifty Bank index closing 0.76 per cent higher at 54,067.55.
On the downside, technology stocks faced renewed selling pressure, with Infosys leading the laggards with a 1.25 per cent decline to ₹1,480.00. Nestle India dropped 0.72 per cent to ₹1,192.30, while HDFC Life Insurance fell 0.70 per cent to ₹777.25. Wipro and NTPC also ended in the red, declining 0.55 per cent to ₹249.54 and 0.54 per cent to ₹334.50, respectively.
“On the downside, Nifty IT saw fresh profit-booking, dragged lower by Infosys (-1.31 per cent) & Wipro (-0.55 per cent),” observed Sudeep Shah, Head – Technical Research and Derivatives at SBI Securities.
Market breadth remained decisively positive throughout the session, with 2,624 stocks advancing against 1,484 declines on the BSE. The advance-decline ratio of 2:1 on the NSE underscored broad-based buying interest across market segments. A total of 126 stocks hit 52-week highs, while 64 touched 52-week lows.
The India VIX, a key measure of market volatility, declined 4.12 per cent to 10.93, providing comfort to bullish investors and reflecting easing market uncertainty. “India VIX slipped 4 per cent to just under 11, reflecting easing volatility,” confirmed Hariprasad K, SEBI-registered Research Analyst and Founder – Livelong Wealth.
Broader market indices mirrored the positive sentiment, with the Nifty Midcap 100 gaining 0.65 per cent to 57,345.50 and the Nifty Next 50 advancing 0.66 per cent to 67,463.05. The Nifty Financial Services index rose 0.62 per cent to 25,732.55.
Market participants remained focused on the ongoing two-day GST Council meeting, which began Wednesday and continued into Thursday. “Indian equities closed higher after a mixed start to the session, buoyed by expectations of a consumption-led stimulus from the potential GST slab rationalisation,” said Vinod Nair, Head of Research at Geojit Investments Limited.
The anticipation surrounding potential GST reforms kept consumer-oriented sectors in focus. “The 58th GST Council meeting began today and continues tomorrow, with key discussions on rationalising the four-tier GST structure into two slabs and possible rate cuts on 175 items, ranging from automobiles to FMCG products,” noted Hariprasad K.
In currency markets, the rupee showed marginal strength, gaining 0.13 per cent to close at 88.02 against the dollar. “Rupee traded slightly positive with gains of 0.13 at 88.02 as markets showed minor strength with focus on the ongoing GST meeting, where the outcome in the coming days could provide support to the currency,” explained Jateen Trivedi, VP Research Analyst at LKP Securities.
However, currency analysts remained cautious about the medium-term outlook. “While GST reforms may help cushion the fall, the overall trend remains weak, and the rupee may test levels towards 89.50 in the coming months. For the near term, the range is expected between 87.90 – 88.45,” Trivedi added.
In commodities, gold continued its bullish momentum, with MCX gold touching highs of ₹1,06,300. “Gold traded positive with highs of $3,545 on COMEX and ₹1,06,300 on MCX, sustaining its bullish momentum as dollar weakness, tariff uncertainty, and geopolitical positioning between the US, India, Russia and China continue to guide prices higher,” said Jateen Trivedi.
Technical analysts remained cautiously optimistic about the market’s near-term prospects. “After range-bound moves in the first half, the index rebounded from the 24,600 zone and decisively crossed 24,700, hitting a high of 24,737.05. A breakout above 24,800 could open doors to 25,000, with support at 24,600,” observed Hariprasad K.
Shrikant Chouhan, Head Equity Research at Kotak Securities, echoed similar views: “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.”
Looking ahead, market sentiment hinges heavily on the outcome of the GST Council deliberations. “With participants awaiting clarity from the GST Council outcome, we continue to view the index as being in a consolidation phase. Any favourable announcements from the GST Council could act as a near-term catalyst,” said Ajit Mishra, SVP Research at Religare Broking.
Foreign institutional investors continued their selling streak, with net outflows of ₹1,159 crore on Tuesday, adding to the cautious undertone despite Wednesday’s recovery. Market participants will closely watch for any announcements from the GST Council meeting, which could provide the next directional cue for Indian equities in the coming sessions.
Published on September 3, 2025