Nifty Extends Winning Streak to Four Sessions, Auto Stocks Surge on GST Tax Cuts
The Nifty index closed 0.13% higher at 24,773, marking its fourth consecutive session of gains. The auto sector was the standout performer, with the Nifty Auto index surging 3.30% following GST tax cuts. IT stocks declined by 0.90% due to concerns about US economic growth. The broader market also showed advances, with the Nifty Midcap 100 and Smallcap 100 indices rising 0.50% and 0.16% respectively. Foreign investors were net sellers, while domestic investors were net buyers. Resistance levels for the Nifty are around 24,900-25,000, with immediate support at 24,620-24,710.
*this image is generated using AI for illustrative purposes only.
The Nifty continued its upward trajectory for the fourth consecutive session, closing 32 points higher at 24,773. This 0.13% gain was primarily driven by a combination of positive global cues, domestic policy reforms, and encouraging remarks from US President Donald Trump regarding India.
Market Performance
The benchmark index reached an intraday high of 24,885 but faced resistance near the 24,900 level. In late trading, it experienced a pullback of over 100 points from its peak. Despite this late-session pressure, the overall market sentiment remained positive.
Sector-wise Performance
Auto Sector Leads the Rally
The auto sector emerged as the star performer of the day, with the Nifty Auto index surging by 3.30%. This impressive gain came on the heels of automakers announcing price cuts following the GST Council's decision to reduce vehicle taxes. Leading the charge in this sector were:
- Tata Motors
- Bajaj Auto
- Mahindra & Mahindra (M&M)
- Eicher Motors
IT Sector Faces Headwinds
In contrast to the auto sector's strong performance, IT stocks experienced a decline of 0.90%. This downturn was attributed to growing concerns about slower economic growth in the United States, a key market for Indian IT services companies.
Broader Market Trends
The positive sentiment was not limited to large-cap stocks. Broader markets also showed advances:
| Index | Change |
|---|---|
| Nifty Midcap 100 index | 0.50% |
| Nifty Smallcap 100 index | 0.16% |
Investor Activity
The day saw divergent trends in investor behavior:
- Foreign investors: Net sellers
- Domestic investors: Net buyers
Technical Outlook
Market analysts have identified key levels for the Nifty:
- Resistance: Around 24,900-25,000 levels
- Immediate support: At 24,620-24,710
As the Nifty continues its upward movement, these levels will be crucial to watch in the coming sessions.
The market's resilience in the face of late-session pressure, coupled with sector-specific developments like the auto industry's boost from GST tax cuts, suggests a complex interplay of domestic and global factors shaping investor sentiment. While the IT sector's performance indicates some caution regarding global economic trends, the overall market breadth remains positive.
18
