The Indian stock market ended Monday’s trading session with mild gains, as a sharp rally in auto stocks was offset by a sell-off in IT stocks and profit-taking in consumer goods stocks. The auto sector saw strong buying as expectations built up around a demand revival following price cuts by automakers, who passed on the full benefits of the GST rate reduction to customers.
The Nifty 50 ended 0.13% higher at 24,773, while the Sensex rose 0.09% to 80,787 points. The broader markets ended mixed, with the Nifty Midcap 100 index gaining 0.50% and the Nifty Smallcap 100 rallying 0.16%.
Sector-wise, Nifty Auto emerged as the top gainer, ending 3.30% higher, followed by Nifty PSU Bank and Nifty Realty, which added 0.49% and 0.46%, respectively. On the losing side, the Nifty IT was the top laggard, dropping 0.94%, followed by Nifty Pharma and Nifty FMCG, which declined 0.27% and 0.21%, respectively.
The GST rationalisation has led most Indian automakers to fully pass on the tax benefits to consumers, resulting in significant price cuts ranging from tens of thousands to several lakhs of rupees, depending on the segment and brand, including budget models, SUVs, and luxury vehicles.
For instance, Tata Motors and Mahindra & Mahindra have announced price cuts of up to ₹1.45 lakh and ₹1.5 lakh, respectively, while Hyundai has passed on benefits of up to ₹2.4 lakh. Although Maruti Suzuki has yet to announce revised prices, it is estimated that its small car segment is likely to benefit substantially from the rate cuts.
Meanwhile, trade talks between India and the US remain stuck after five rounds of negotiations, although India’s Commerce Minister has expressed optimism about the discussions. While he indicated that timelines are not a priority, he expects the trade deal to be finalised by November 2025.
Cohance Lifesciences, GMDC lead gainers with up to 8% surge
Cohance Lifesciences emerged as the top gainer, rallying 8% to ₹995 apiece, followed by GMDC, which rose another 6.1% to ₹540. The major auto pack also closed with stellar gains, with Motherson Sumi Wiring, Bharat Forge, Ashok Leyland, Tata Motors, Bajaj Auto, Mahindra & Mahindra, Eicher Motors, Tube Investments of India, Exide Industries, and TVS Motor Company all gaining between 3% and 6%.
The recent GST rate cut on automobiles is expected to boost demand, particularly in the passenger vehicle segment, which has been struggling with weak urban consumer sentiment. The timing of the tax relief, just ahead of the festive season, has further raised hopes among automakers for a demand revival.
Meanwhile, Bank of America Securities (BofA) believes that the key drivers for an auto sector upcycle are now in place — including better cost of ownership, easier access to credit, and stable crude prices. BofA projects auto sector volume growth at an 8% CAGR from FY25 to FY28, tracking approximately 0.8x nominal GDP.
Amber Enterprises, Trent, Godfrey Phillips India among top laggards
A total of 25 Nifty 500 stocks closed the session in the red, with Amber Enterprises leading the pack, falling 4.1% to ₹7,473 apiece, followed by EID Parry (India), which declined over 4% to ₹1,067.
Trent was another top laggard, as the Tata Group stock lost 3.8%, dropping to ₹5,315 apiece. Godfrey Phillips India also extended its decline, sliding 3.76% to ₹10,657.
Meanwhile, Coromandel International continued its losing streak for the third straight session, falling another 3.22% to ₹2,185.
Blue Star, PVR INOX, HBL Engineering, Concord Biotech, and 16 other stocks declined between 2% and 3%.
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