The Indian stock market kicked off September on a strong footing, with both benchmark indices ending Monday’s session nearly 1% higher. Market sentiment was lifted by better-than-expected GDP growth in the June quarter, after equities were hammered last week by higher US tariffs.
Strong August sales figures from auto majors and anticipation around the upcoming GST Council meeting also contributed to the positive start to the month.
The Nifty 50 gained 0.81% to close at 24,625, while the S&P BSE Sensex rose 0.70% to 80,364. The broader markets also staged a strong comeback from last week’s slump, with the Nifty Midcap 100 and Nifty Smallcap 100 advancing 2% and 1.6%, respectively.
Sector-wise, the auto pack led the rally, with the Nifty Auto index soaring 2.80% as all 10 constituents ended with sharp gains. It was followed by the Nifty Consumer Durables, Nifty Metal, and Nifty Oil and Gas indices, which climbed 2.12%, 1.64%, and 1.35%, respectively.
Nifty IT index rose 1.3% after data showed the U.S. Personal Consumption Expenditures (PCE) rose in line with estimates, keeping alive the expectations of a US Fed rate cut in September. The Federal Reserve tracks the PCE price measures for its 2% inflation target.
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