Where is the market headed?
The weekend break of three days brought some important developments for the economy and the markets. The biggest news was that the government has realized that the economy is slowing down and needs a push. They have announced that GST classification will be changed for many products. For most items, slab rates will be reduced, while for a few they may go up. This move is expected to give a big boost to consumption, which can help restart the sluggish economy. This was seen as very positive news.
Another major development was the upgrade of India’s bond rating by S&P. Global headlines also noted the meeting between President Putin and President Trump. While it did not seem like a very successful discussion, it is still being seen as a reasonably positive outcome. Later on Monday night, President Zelensky of Ukraine and several EU leaders are scheduled to meet President Trump at the White House to discuss peace proposals. If these talks succeed, markets may celebrate as war fears reduce and crude oil, logistics, and shipping costs come down.
Market Overview
The markets bounced today with a solid 1% jump, but it is yet to be seen if this move can sustain. Confidence will rise only if the index crosses 25,000. Until then, underconfidence is likely to remain.
Nifty Next 50
Nifty Jr closed 1.34% higher.
Nifty Mid and Small Cap
Midcaps gained 1.19%, and Small caps were up 1.33%.
Bank Nifty
The Nifty Bank was weaker, rising only 0.7% and closing near the day’s low.
GOLD
Gold stayed flat at around ₹9,965 per gram.
Advance Decline Ratio
Heat Maps
Market breadth was positive, with heat maps largely green, though ITC fell due to GST changes on tobacco. On the other hand, Bajaj twins surged 5% and 3.5%. Auto stocks like Maruti, Tata Motors, Bajaj Auto, and Eicher Motors saw strong gains as smaller cars are expected to benefit from lower GST.
Movers Of The Day
Maruti Suzuki was the star performer of the day, jumping 8.75% as the biggest beneficiary of GST cuts on small cars.
Sectoral Overview
Autos overall rose 4.18%, marking one of the strongest moves in the sector in a long time. MNCs, real estate, consumption, manufacturing, and metals also saw strong gains.
Sector of the Day
Nifty Auto Index
Autos saw widespread buying, with Ashok Leyland, TVS Motors, Hero MotoCorp, and MRF all performing well.
Nifty Realty Index
Real estate stocks like Phoenix, Godrej, Brigade, DLF, and Oberoi Realty moved higher by 2%.
Tweets Of the Day
A study highlighted that key beneficiaries of GST cuts include Maruti, Tata Motors, Ashok Leyland, ICICI Bank, HDFC Bank, IDFC First, Bajaj Finance, Hindustan Unilever, Britannia, Havells, Indian Hotels, Relaxo, Bata, and several others. Consumption-led stories are clearly emerging from this development.
On a different note, the falling rupee against the euro has made European travel far more expensive. In just nine months, the rupee has weakened almost 15%, moving from 89–90 to 103. For travel enthusiasts, it may be wiser to plan trips earlier in life as currency weakness does not look like it will reverse anytime soon.
