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Informist, Monday, Sept. 8, 2025

By Gopika Balasubramanium

MUMBAI – Benchmark equity indices are likely to be range-bound on Tuesday amid prevailing positive sentiment after the government revamped the goods and services tax structure. While investors remain bullish on Indian equities, they await fresh triggers for a substantial upside from the current levels. India's trade negotiations with other countries, especially amid Indian exports facing 50% tariffs in the US, will also be in focus. Meanwhile, there were some signs of thawing in the relations between India and the US, with President Donald Trump and Prime Minister Narendra Modi praising each other over the weekend. 

"Our monthly review of macro (economic) data suggests that growth recovery is not yet visible, though some silver linings have emerged," Emkay Global Financial Services said. However, the brokerage is positive that the Oct-Mar period will be better, especially after the GST reforms announced last Wednesday. 

"Though the market response was weak, much of this was priced in the 2% Nifty (50) rally since the Prime Minister's GST announcement on 15-Aug-25," the brokerage said. "We remain positive on the markets and uphold our Sep-26 Nifty (50) target of 28,000, while we believe autos are the best way to play the GST reform," it said.

Analysts are bullish on automobile companies in the near term and expect the sales volume to pick up during the festive season. They expect three measures—income tax rebate, interest rate cut, and GST reduction—to boost the sector, with rerating likely after the festive season. Currently, Mahindra & Mahindra, Maruti Suzuki India, and Eicher Motors are at record highs, with analysts seeing further upside for these companies. The Nifty Auto closed at 27189.20 points, up 868.60 points or 3.3% and has gained for the fourth straight session. The index is 1.8% away from its record high of 27696.1 points it reached on Sept. 27, 2024. 

The Nifty 50 closed at 24773.15 on Monday, up 32.15 points or 0.1%, and the BSE Sensex ended at 80787.30, up 76.54 points or 0.1%. Technical analysts see the 50-stock index to find support at 24600–24400 points and resistance at 24800-25000 points. "The trend for Nifty 50 is bullish and I see it moving between 24620-24900," Nandish Shah, senior technical and derivatives analyst at HDFC Securities, said. 

Analysts said the potential trade deals with other countries will be in focus amid the steep 50% tariffs on Indian goods imposed by the US. India and Qatar are likely to finalise the terms of reference for a free trade agreement by next month, a top commerce ministry official said. After the United Arab Emirates and Oman, Qatar is the third country from the Gulf Cooperation Council to initiate discussions for a trade pact with India. While New Delhi already signed a trade deal with the UAE, it is most likely to conclude the talks with Oman very soon. Meanwhile, India and the European Union began a fresh round of negotiations for a free trade agreement in New Delhi on Monday. Commerce and Industry Minister Piyush Goyal will meet the European Union Commissioner for Trade and Economic Security Maros Sefcovic in New Delhi on Friday for further discussions. 

Trump on Saturday commented that he would always be friends with Modi and called the latter "a great prime minister. The US President also said both countries have a "special relationship" and said "there is nothing to worry about." Responding to this, Modi said he deeply appreciates Trump's positive stance on the ties. "India and the US have a very positive and forward-looking Comprehensive and Global Strategic Partnership," Modi said in a post on X. Any potential improvement in India-US ties or comments on tariffs levied on India will be keenly watched by the investors. End

Edited by Saji George Titus

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