Benchmarks rebound as strong GDP growth lifts sentiment, Nifty crosses 24,600 mark

The domestic equity benchmarks staged a strong comeback on Monday, snapping a three-day losing streak, as upbeat GDP data boosted investor confidence. The Nifty closed above the 24,600 mark, powered by gains in auto and consumer durables stocks.

India's Q1 GDP rose 7.8%, surpassing expectations and reinforcing confidence in the economy's resilience despite global headwinds. Hopes of GST rationalisation at the upcoming council meeting further supported discretionary demand, particularly in auto and durables.

The S&P BSE Sensex advanced 554.84 points or 0.70% to 80,364.49. The Nifty 50 index added 198.20 points or 0.81% to 24,625.05. In the previous three sessions, the Sensex slumped 2.23% and the Nifty tumbled 2.16%.

Mahindra & Mahindra (up 3.65%), Infosys (up 2.04%) and ICICI Bank (up 0.91%) boosted the Nifty higher today.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index dropped 1.64% and the S&P BSE Small-Cap index shed 1.49%.

The market breadth was strong. On the BSE, 2,795 shares rose and 1,391 shares fell. A total of 199 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, dropped 3.91% to 11.29.

Economy:

The seasonally adjusted HSBC India Manufacturing Purchasing Managers' Index (PMI) stood at 59.3 in August compared with 59.1 in July 2025. The upward movement in the headline figure largely reflected an acceleration in growth of production volumes. The rate of expansion was the quickest in close to five years.

Meanwhile, India's economy picked up momentum in the April-June quarter, defying expectations of slower growth. Gross domestic product (GDP) grew 7.8% in the quarter, the strongest pace in five quarters, compared with 7.4% in the previous three-month period, according to government data released Friday.

Gross value added (GVA) -- considered a better gauge of underlying economic activity since it excludes indirect taxes and subsidy transfers -- rose 7.6% during the same period, up from 6.8% in the prior quarter.

Numbers to Track:

The yield on India's 10-year benchmark federal paper rose 0.02% to 6.589 from the previous close of 6.588.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 88.2000 compared with its close of 88.0900 during the previous trading session.

MCX Gold futures for 3 October 2025 settlement gained 0.94% to Rs 104,800

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.15% to 97.545.

The United States 10-year bond yield rose 0.50% to 4.246.

In the commodities market, Brent crude for November 2025 settlement added 55 cents or 0.83% to $68.04 a barrel.

Global Markets:

European shares advanced while Asian ended mixed on Monday as investors weighed China's latest manufacturing data and broader geopolitical developments.

China's RatingDog Manufacturing Index ' previously known as the Caixin PMI ' came in at 50.5 for August, signaling modest expansion after July's contraction of 49.5.

Meanwhile, official government data released Sunday showed the country's manufacturing PMI at 49.4 in August, barely higher than July's 49.3.

Traders also kept an eye on India-China relations following the Shanghai Cooperation Organization meeting, where leaders of both countries emphasized that they are development partners rather than rivals.

In the U.S., attention turned to a federal appeals court ruling that deemed most of former President Donald Trump's reciprocal tariffs' illegal. The Court of Appeals for the Federal Circuit concluded Trump exceeded his authority when imposing tariffs globally under his April 2 'liberation day' declaration.

On Wall Street, stocks retreated Friday as fresh inflation data suggested price pressures remain a concern heading into September.

The S&P 500 slipped 0.64% to 6,460.26, though it still notched its fourth consecutive monthly gain. The Nasdaq Composite fell 1.15% to 21,455.55, while the Dow Jones Industrial Average declined 92.02 points, or 0.20%, to close at 45,544.88.

U.S. market will remain shut on Monday in observance of Labor Day.

Stocks in Spotlight:

SML Isuzu slipped 2.79% after the company's total sales fell 15% year-on-year (YoY) to 842 units in August 2025 from 990 units in the same month last year.

Bajaj Auto gained 3.84% after the auto maker has reported 5% increase in total auto sales for August 2025, selling 4.17 lakh units as against 3.97 lakh units sold in August 2024.

VST Tillers Tractors rallied 3.55% after reporting a 1.87% increase in total sales to 4,499 units in August 2025, up from 4,416 units sold in August 2024.

Zydus Wellness surged 9.89% after announcing that its wholly owned subsidiary Alidac UK signed a definitive agreement to acquire UK-based Comfort Click along with its subsidiaries in Ireland, US and India. The deal, valued at GBP 239 million subject to adjustments, marks Zydus Wellness' first overseas acquisition and entry into the Vitamins, Minerals and Supplements (VMS) space.

Barak Valley Cements rose 5.03% after announcing that its subsidiary, Valley Strong Cements (Assam), secured incentives under the Industrial and Investment Policy of Assam 2019. The incentives are tied to a Rs 482 crore project in the state. Phase I involves Rs 300 crore for a 1,600 TPD clinker unit. Phase II adds Rs 182 crore for a 2,000 TPD cement plant.

Neogen Chemicals advanced 3.14% after the company announced that its wholly owned subsidiary Neogen Ionics (NIL) has entered into a joint venture agreement (JVA) with Morita Investment. NIL and MIL have entered into a JVA with the object to utilise the technological and manufacturing capabilities of both organisations and to utilise these synergies to participate in the rapidly growing Lithium-Ion Battery business.

Axiscades Technologies advanced 2.84% after announcing that its subsidiary, Mistral Solutions, has secured a major order worth Rs 150 crore related to the Indian Air Force's Su-30MKI 'Super-30' modernization program.

Sterlite Technologies (STL) fell 5.67% after the company updated exchanges on an adverse litigation outcome involving its US arm. The dispute stems from a case filed by Prysmian Cables and Systems USA against Stephen Szymanski, an employee of Sterlite Technologies Inc (STI), and STI itself in the US District Court, South Carolina. The plaintiff alleged violations of non-compete and confidentiality agreements, claiming that confidential information was disclosed to STI, giving it an unfair competitive advantage.

IPO Update:

The initial public offer (IPO) of Amanta Healthcare received bids for 3,11,31,233 shares as against 70,00,000 shares on offer, according to stock exchange data at 16:42 IST on Monday (1 September 2025). The issue was subscribed 4.45 times. The issue opened on 1 September and it will close on 3 September 2025. The price band is set at Rs 120 to Rs 126 per equity share.

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