Indices dance to PMI's upbeat tune, awaiting GST drumroll

Equity benchmarks ended with strong gains on Wednesday as upbeat services PMI data lifted sentiment, even as investors kept a close watch on the Goods and Services Tax (GST) Council meeting that could unveil rate cuts across categories. The Nifty settled above the 24,700 mark, led by metal, pharma and PSU bank shares.

Indices oscillated in early trade before firming up on hopes of a consumption-led boost from possible GST slab rationalisation. Analysts, however, warned that high expectations could lead to disappointment and spark near-term consolidation.

The S&P BSE Sensex added 409.83 points or 0.51% to 80,567.71. The Nifty 50 index advanced 135.45 points or 0.55% to 24,715.05.

Tata Steel (up 5.90%), JSW Steel (up 2.92%) and HDFC Bank (up 1%) boosted the Nifty higher today.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.63% and the S&P BSE Small-Cap index added 0.90%.

The market breadth was strong. On the BSE, 2,624 shares rose and 1,484 shares fell. A total of 169 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, fell 4.12% to 10.93.

Economy:

The seasonally adjusted HSBC India Services PMI rose to 62.9 in August from 60.5 in July, marking the fastest expansion since June 2010. The HSBC India Composite PMI Output Index also climbed to 63.2 from 61.1, the sharpest pace of growth in more than 17 years.

Numbers to Track:

The yield on India's 10-year benchmark federal paper shed 0.26% to 6.552 from the previous close of 6.569.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 88.0725 compared with its close of 88.1500 during the previous trading session.

MCX Gold futures for 3 October 2025 settlement gained 0.39% to Rs 106,206

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.10% to 97.545.

The United States 10-year bond yield rose 0.26% to 4.288.

In the commodities market, Brent crude for November 2025 settlement dropped $1.19 or 1.72% to $67.95 a barrel.

Global Markets:

European stocks advanced on Wednesday, recovering from declines in the prior session, as a sell-off in longer dated regional bonds showed signs of easing.

Asian shares ended lower as investors weighed the impact of rising global bond yields alongside fresh developments in trade negotiations and geopolitical tensions.

Chinese markets were in focus following President Xi Jinping?s speech at a military parade to commemorate the 80th anniversary of the end of World War II. The event was graced by 26 world leaders, including Russian President Vladimir Putin and North Korea?s leader Kim Jong Un.

Overnight stateside, all three key benchmarks ended the day lower. The Dow Jones Industrial Average ended down 249.07 points, or 0.55% to close at 45,295.81. The broad-based S&P 500 dropped 0.69% to settle at 6,415.54, while the Nasdaq Composite slid 0.82% to close at 21,279.63.

New Listing:

Shares of Engineering were at Rs 95.64 on the BSE, representing a discount of 1.40% compared with the issue price of Rs 97.

The scrip was listed at Rs 99.70, exhibiting a premium of 4.53% to the issue price. The stock has hit a high of Rs 101.73 and a low of Rs 93.26. On the BSE, 87.21 lakh shares of the company were traded in the counter.

Shares of Anlon Healthcare were at Rs 91.66 on the BSE, representing a premium of 0.73% compared with the issue price of Rs 91.

The scrip was listed at 91, matching the initial public offer (IPO) price. The stock has hit a high of Rs 92 and a low of Rs 89. On the BSE, 6.47 lakh shares of the company were traded in the counter.

Stocks in Spotlight:

Metal stocks extended their rally for a third straight session on September 3, as investors cheered China?s move to curb excess capacity and a softer dollar.

The Nifty Metal index rose 3.11% to 9,676.40. The index added 3.81% in the three trading session. Tata Steel (up 5.96%), Jindal Steel & Power (up 5.47%), Steel Authority of India (up 5.26%), Hindustan Copper (up 4.71%), National Aluminium Company (up 3.43%), Welspun Corp (up 3.36%), Hindalco Industries (up 3.02%), JSW Steel (up 2.94%), NMDC (up 1.92%), Lloyds Metals & Energy (up 1.80%), Vedanta (up 1.62%), APL Apollo Tubes (up 1.03%), Hindustan Zinc (up 0.90%), Adani Enterprises (up 0.78%) advanced.

A global brokerage said China plans to cut steel capacity by 50 million tonnes in 2025 and reduce output by 8.5% this year, a move expected to lift global steel prices.

TBO Tek surged 14.97% after the company announced its agreement to acquire US based Classic Vacations from Phoenix-based investment firm The Najafi Companies for an estimated total purchase of up to $125 million.

E2E Networks zoomed 10% after the company received a letter from the Ministry of Electronics and Information Technology (MeitY) to allocate GPU resources to Gnani AI under the India AI mission.

Arkade Developers added 4.38% after the company has signed a share purchase agreement to acquire 100% shareholding in Woollen and Textile Industries, for the purpose of acquiring land in Bhandup (West).

Lupin jumped 3.23% after the company received US Food and Drug Administration (USFDA) approval for the abbreviated new drug application (ANDA) for Risperidone extended-release injectable suspension.

Aarti Pharmalabs rose 1.10% after the company announced the inauguration of phase 1 of its greenfield manufacturing facility located in Atali, District Bharuch, Gujarat.

Tata Consultancy Services (TCS) shed 0.45%. The company has entered into a strategic partnership with leading Nordic insurance firm Tryg in a deal valued at ?550 million (approximately Rs 4,900 crore).

DCM Shriram shed 0.56%. The company has announced a long-term partnership with Aarti Industries for the supply of chlorine, strengthening its position in the chemicals value chain.

Caplin Point Laboratories rose 1.75% after the company received final approval from the United States Food and Drug Administration (USFDA) for its abbreviated new drug application (ANDA) for Milrinone Lactate in 5% Dextrose Injection.

Quadrant Future Tek rose 0.47%. The company announced that it has received a letter of acceptance (LOA) worth Rs 128.91 crore from RailTel Corporation of India.

IPO Update:

The initial public offer (IPO) of Amanta Healthcare received bids for 57,40,83,727 shares as against 70,00,000 shares on offer, according to stock exchange data at 16:30 IST on Wednesday (3 September 2025). The issue was subscribed 82.01 times.

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