Sensex climbed as much as 888.96 points, hitting an intraday high of 81,456.67, before settling at 80,718.01, up 150.30 points or 0.19%.
Nifty50 touched an intraday peak of 24,980.75 (up 265.7 points, 1.07%) and finally closed at 24,734.30, up 19.25 points or 0.08%.
Investors reacted positively to the Goods and Services Tax (GST) Council’s announcement a day earlier, which streamlined the tax structure into two main slabs – 5% for essential items and 18% for general goods, while keeping luxury and sin goods under higher rates.
Interestingly, broader indices saw some caution. Nifty Midcap 100 closed 0.67% lower, while Nifty SmallCap 100 fell 0.71%, indicating that investors preferred large, stable companies over riskier mid- and small-caps.
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Impact on the stock market
Sector-wise performance
- Nifty Auto led the gains, up 0.85%, driven by strong interest in Maruti Suzuki, M&M, and Bajaj Auto.
- FMCG rose modestly by 0.24%, benefiting from the GST cuts on snack items.
- On the flip side, Nifty PSU Bank dipped 1.11%, IT lost 0.94%, and Media slipped 0.78%.
| Sector/Index | Performance |
| IT & BPM sector | -0.94% |
| Healthcare sector | -0.04% |
| Oil & Gas sector | -0.96% |
| Real estate sector | -0.78% |
| PSU Bank in India | -1.11% |
Top gainers today
| Company | Share Price (in ₹) | Change % |
| M&M | 3,481.50 | 5.95 |
| Bajaj Finance | 934.75 | 4.29 |
| Apollo Hospital | 7,900.00 | 2.12 |
| Bajaj Finserv | 2,002.20 | 1.84 |
| Nestle | 1,212.60 | 1.49 |
Top losers today
| Company | Share Price (in ₹) | Change % |
| TATA Cons. Prod | 1,071.10 | -3.02 |
| HDFC Life | 754.25 | -2.86 |
| Wipro | 244.97 | -1.84 |
| Maruti Suzuki | 14,662.00 | -1.78 |
| IndusInd Bank | 754.85 | -1.73 |
Market aftermath: Impact on stocks
Solar Industries shares tumble after Nagpur plant blast
Tragic news hit Solar Industries today as an explosion at their Nagpur plant killed one worker and injured eight others. The mishap occurred during the crystallization process of energetic materials at their Chakdoh facility. While the company stated that safety systems were activated and most workers evacuated safely, the incident caused a significant drop in shares.
- Solar Industries fell over 3%, hitting Rs 13,810 per share.
- Defence stocks like Cochin Shipyard and GRSE dropped nearly 3%, while BEML and Astra Microwave Products fell more than 2%. Bharat Dynamics, BEL, Mazagon Dock Shipbuilders, and Paras Defence saw declines of 1-2%.
The incident has drawn attention to safety measures and risk management, reminding investors to consider operational risks in industrial companies.
Also read: Top Solar Energy Penny Stocks in India
GST 2.0 impact on snacks and casinos
The GST Council’s decision to reduce the tax rate on pre-packaged and labelled namkeen items from 12% to 5% gave a direct boost to snacks manufacturers:
- Prataap Snacks rose 3%
- Bikaji Foods and Gopal Snacks gained around 2%
Analysts expect this move to revive consumption, especially with urban households seeing lower food costs and favorable conditions from commodity prices, good monsoon, and recent tax cuts.
However, not all was positive. Casino and gaming company Delta Corp plunged 7%, as GST on casinos jumped from 28% to 40%, cutting into profitability and snapping a recent two-day winning streak. This highlights how policy moves can create winners and losers even within the same broad consumption theme.
Cement stocks surge on GST cut
Another key beneficiary of GST 2.0 was the cement sector, which saw a rate reduction from 28% to 18%.
- Ultratech Cement, Ambuja Cements, ACC, Shree Cement all surged between 2-3%.
The lower tax rate is expected to reduce construction costs, improve housing affordability, and support sector profitability. Analysts also noted that the GST cut on coal inputs allows cement manufacturers to claim full input tax credit, which could further strengthen margins.
Crude oil
Crude oil futures traded lower on Thursday morning, with global supply dynamics weighing on sentiment.
- Brent crude: $67.17, down 0.64%
- WTI crude: $63.53, down 0.69%
- MCX September crude: ₹5,600, down 0.60%
OPEC+ is reportedly considering another production hike in October, which could increase supply further. Meanwhile, US crude inventories rose by 0.62 million barrels for the week ending 29th August, contrary to market expectations of a 3.4 million barrel decline, adding to the pressure.
Other commodity movements:
- MCX mentha oil: ₹999, up 2.93%
- NCDEX cottonseed oilcake: ₹3,426, up 0.29%
- NCDEX guar gum futures: ₹9,262, down 0.60%
These movements reflect the ongoing volatility in global commodities, which indirectly influences domestic manufacturing and FMCG sectors.
Conclusion
Thursday’s market was a mix of optimism and caution. Large-cap, consumption-led stocks like M&M, Bajaj Finance, and FMCG names rode the GST wave higher, while mid- and small-cap indices and sector-specific laggards reminded investors that not all areas of the market benefit equally from policy reforms.
The GST cuts on snacks and cement are expected to boost demand in the near term, while the higher tax on casinos and explosions in industrial stocks serve as cautionary tales of market sensitivity to policy and operational risks.
Crude oil dynamics and global commodity shifts further add a layer of complexity to the Indian market outlook.
For millennial and Gen Z investors, the takeaway is clear: focus on sectors and companies that benefit from structural policy changes and remain alert to risks from global commodities and industrial incidents.
Will the GST-driven optimism sustain in the coming weeks, or will broader market caution take over? Keep an eye on consumer trends, industrial news, and commodity prices – because the story of the market is far from over.
For more stock market insights, check out the StockGro blog.
