Gift Nifty signals strong opening amid new GST reforms

GIFT Nifty September 2025 futures were trading 122.50 points higher in early trade, suggesting a positive opening for the Nifty 50.

GST Reforms:

The GST Council approved the significant rate cuts on several essential items. Effective from September 22nd, the new rates aim to boost consumption by shifting to a two-slab structure of 5% and 18%, abolishing the 12% and 28% rates. A special 40% GST slab has been introduced for super luxury and sin goods.

Institutional Flows:

Foreign portfolio investors (FPIs) sold shares worth Rs 1,666.46 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 2,495.33 crore in the Indian equity market on 23 July 2025, provisional data showed.

According to public data, FPIs have sold shares worth Rs 4,255.65 crore in the cash market in so far in September 2025. This follows their cash sales of shares worth Rs 46,902.92 crore in August 2025.

Global Markets:

Asian market traded mixed on Thursday as investors awaiting Australia?s household spending data for July later in the day

Global bond markets will continue to be in focus with long-dated borrowing costs around the world under pressure. The U.S. 30-year Treasury yield nudged above 5% on Wednesday morning for the first time since July after a court ruled that most of the Trump administration?s tariffs are illegal, raising questions over the future of tariff revenues.

Overnight on Wall Street, U.S equities closed mixed. The S&P 500 rose Wednesday, boosted by tech shares after a federal court decision in an Alphabet antitrust case fueled optimism that the tech giants would be able to weather regulatory threats.

Nasdaq Composite gained 1.03%, while the S&P 500 climbed 0.51%. The Dow Jones Industrial Average shed 0.05%.

Traders awaited for Nonfarm payrolls data due on Friday.

Domestic Market:

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. 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.

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