The Indian stock market kicked off September on a strong footing, with both benchmark indices ending Monday’s session nearly 1% higher. Market sentiment was lifted by better-than-expected GDP growth in the June quarter, after equities were hammered last week by higher US tariffs.
Strong August sales figures from auto majors and anticipation around the upcoming GST Council meeting also contributed to the positive start to the month.
The Nifty 50 gained 0.81% to close at 24,625, while the S&P BSE Sensex rose 0.70% to 80,364. The broader markets also staged a strong comeback from last week’s slump, with the Nifty Midcap 100 and Nifty Small cap 100 advancing 2% and 1.6%, respectively.
Sector-wise, the auto pack led the rally, with the Nifty Auto index soaring 2.80% as all 10 constituents ended with sharp gains. It was followed by the Nifty Consumer Durables, Nifty Metal, and Nifty Oil and Gas indices, which climbed 2.12%, 1.64%, and 1.35%, respectively.
Nifty IT index rose 1.3% after data showed the U.S. Personal Consumption Expenditures (PCE) rose in line with estimates, keeping alive the expectations of a US Fed rate cut in September. The Federal Reserve tracks the PCE price measures for its 2% inflation target.
According to the domestic brokerage firm JM Financial, the rate rationalisation in GST is expected to be discussed at the GST council meet on 3-4th September. If cleared, the revised rates could be effective by 22nd Sep. However, industry bodies have highlighted that consumers are postponing their purchase decisions in anticipation of lower prices.
Over 35 Nifty 500 stocks gain between 4% and 15%
Ola Electric shares extended their stellar surge, gaining another 15.6% to ₹62.5 apiece on the back of positive developments from the Shanghai Cooperation Organization (SCO) summit in China and the tailwind from proposed GST reforms that could boost sales.
Investor interest in the stock has revived after Helios Mutual Fund recently added Ola Electric to its portfolio, Dinshaw Irani, CEO of the fund house, told The Economic Times. The stock rose 31% in August, marking its biggest monthly gain since listing around the same time in 2024.
Aditya Birla Fashion was another top performer, with its shares rallying 7.8%, followed by Kaynes Technology, GMDC, RITES, Chennai Petroleum, Tube Investments of India, eClerx Services, Gujarat Gas, and Garden Reach Shipbuilders, all of which rose over 6%.
Today’s market rebound also lifted MCX shares by 5.45% to ₹7,793, snapping a three-day losing streak. Other notable gainers included KFIN Technologies, Dixon Technologies, Manappuram Finance, Data Patterns (India), Amber Enterprises, MphasiS, Inox India, Swiggy, and 19 other Nifty 500 stocks, which advanced between 4% and 5.4%.
Waaree Energies, Godfrey Phillips, and Piramal Enterprises were among the top losers
Waaree Energies led the pack of laggards with a 5.9% drop to ₹3,200 apiece, followed by Godfrey Phillips India, which shed 3.9% to ₹10,571 apiece.
Other notable losers included Piramal Enterprises, United Breweries, Anupam Rasayan India, Sun Pharmaceutical, Metropolis Healthcare, Zee Entertainment, Brainbees Solutions, and six other stocks, which fell between 1.5% and 3%.
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