The BSE Sensex surged 554.84 points (0.70%) to settle at 80,364.49, while the NSE Nifty50 climbed 198.20 points (0.81%) to close at 24,625.05.
The rally was supported by robust economic indicators. India’s GDP expanded 7.8% in Q1 FY26, the fastest in five quarters and comfortably above the RBI’s 6.5% forecast. Adding to the cheer, the HSBC India Manufacturing PMI rose to 59.3 in August, up from 59.1 in July – signalling sustained strength in the industrial sector.
Global cues also helped. A US federal appeals court ruled on August 29 that former President Donald Trump lacked legal authority to impose sweeping tariffs on most nations, boosting optimism for global trade, even though his measures remain temporarily in place.
Broader indices had a field day. The Nifty Midcap 100 closed 1.97% higher and the SmallCap index gained 1.57%.
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Impact on the stock market
Sector-wise performance
Nifty Auto: +2.8% (biggest gainer)
Consumer Durables: +2.08%
Metal: +1.64%
Pharma: -0.12%
Media: -0.32%
| Sector/Index | Performance |
| IT & BPM sector | 1.59% |
| Healthcare sector | 0.28% |
| Oil & Gas sector | 1.35% |
| Real estate sector | 1.04% |
| PSU Bank in India | 1.11% |
Top gainers today
| Company | Share Price (in ₹) | Change % |
| Bajaj Auto | 8,967.00 | 3.89 |
| M&M | 3,315.40 | 3.62 |
| Tata Motors | 690.15 | 3.16 |
| Hero Motocorp | 5,244.00 | 3.07 |
| Trent | 5,450.00 | 2.87 |
Top losers today
| Company | Share Price (in ₹) | Change % |
| Sun Pharma | 1,562.50 | -2.01 |
| ITC | 405.85 | -0.95 |
| HUL | 2,649.50 | -0.39 |
| Titan Company | 3,618.60 | -0.28 |
| Reliance | 1,353.90 | -0.24 |
Market aftermath: Impact on stocks
Ola Electric and Ather Energy: EV buzz electrifies
The real fireworks came from the EV space. Ola Electric surged over 14% to an intraday high of ₹61.88, while Ather Energy spiked to an all-time high of ₹512.80.
Why the excitement? Two major tailwinds:
- Rare earth relief – At the SCO Summit, PM Modi’s meeting with Chinese President Xi Jinping raised hopes that Beijing will ease restrictions on rare earth magnets, vital for EV production. Over 50 Indian applications for imports have been stuck, so any relaxation is a game-changer.
- GST reform hopes – The GST Council is meeting on September 3–4, with a plan to simplify slabs to 5% and 18%. Autos, especially EVs, could be among the biggest beneficiaries.
Adding fuel to the rally, Ola secured PLI certification for its Gen 3 scooter portfolio, which makes up most of its current sales. With Helios Mutual Fund recently buying in, investors are comparing Ola to an “early Zomato moment.”
Since July, Ola’s stock is up more than 56% from its 52-week low of ₹39.60, while Ather has rallied nearly 69% since its May listing.
Also read: Ola Electric stock analysis and expert insights in detail
Bajaj Auto: Export engine revs up
Bajaj Auto gained 2.5% to ₹8,835 after reporting its best sales performance in three months.
Key August numbers:
- Total sales: 417,616 units (+5% YoY)
- Two-wheelers: 341,887 units (+2% YoY)
- Domestic: –12% (184,109 units)
- Exports: +25% (157,778 units)
- Domestic: –12% (184,109 units)
- Commercial vehicles: 75,729 units (+21% YoY)
- India: +7% (48,289 units)
- Exports: +58% (27,440 units)
- India: +7% (48,289 units)
Exports now account for 46% of total two-wheeler sales, compared to 38% a year ago. While domestic demand remains weak, overseas markets are clearly picking up the slack. Between April and August, total sales grew 2% year-on-year to 1.89 million units.
You may also read: Bajaj Auto stock analysis and expert insights in detail
Torrent Power: Betting big on coal
Torrent Power spiked 4% intraday to ₹1,276.6 after bagging a mega project in Madhya Pradesh.
The details are eye-catching:
- Capacity: 1,600 MW (2×800 MW ultra-supercritical plant)
- Investment: ₹22,000 crore (largest ever by the Torrent Group)
- Tariff: ₹5.829/kWh
- Timeline: 72 months to commission
The project will create up to 10,000 jobs during construction and around 1,500 jobs once operational. With this, Torrent’s portfolio will expand to 9.6 GWp generation and 3 GW pumped storage.
While it’s still coal, the company says ultra-supercritical technology ensures lower emissions compared to older plants – a crucial point as India balances growth with sustainability.
You may also read: Torrent Power Ltd
Crude oil
Energy markets stayed subdued. Crude oil prices slipped as traders downplayed the risk of fresh disruptions from Russia.
- Brent (Nov futures): $67.18 (–0.44%)
- WTI (Oct futures): $63.75 (–0.41%)
- MCX (Sept futures): ₹5,634 (–0.35%)
Elsewhere in commodities:
- Nickel (Sept, MCX): ₹1,380.60 (+3.16%)
- Jeera (Sept, NCDEX): ₹19,445 (+1.01%)
- Dhaniya (Sept, NCDEX): ₹7,800 (–0.48%)
Despite Ukraine’s continued strikes on Russian refineries, the muted oil reaction shows the market is becoming “numb” to sanction risks unless the US steps in with stronger measures.
Conclusion
The first day of September gave Dalal Street plenty to cheer about. Strong GDP growth, robust manufacturing data, and global cues combined to lift benchmarks. Autos and EVs led the way, with Ola, Ather, and Bajaj Auto stealing the spotlight. Torrent Power’s mega coal project added another dimension to the day’s movers.
Still, the bigger question remains: can this rally last? With the GST Council meeting around the corner and global crude oil volatility lurking in the background, markets may not stay this smooth for long. But for now, investors can enjoy the green screens and a promising start to the month.
For more stock market insights, check out the StockGro blog.
