GST Council Meeting In Focus Today, Sensex Opens Just Under 80,250, Nifty Tests 24,600

The Goods and Services Tax (GST) Council will hold its 56th meeting in New Delhi on September 3–4, with several reforms likely to be discussed that could directly impact businesses and consumers.

The automobile industry is in the spotlight, with expectations that GST on small hybrid cars and two-wheelers could be reduced from 28 per cent to 18 per cent.

Source : Freepik

Stock markets geared up for a cautious start on Wednesday as investors eagerly waited for the GST Council meeting to begin. The BSE Sensex started trading just under 80,250, gaining nearly 100 points, while the NSE Nifty50 opened the session at 24,602, rising 19 points as of 9:15 AM.

The GIFT Nifty inched up 19 points and touched 24,645, around 8:46 AM. In the pre-open session, the Sensex climbed over 100 points to cross 80,250, the Nifty jumped nearly 50 points and touched 24,627, around 9:06 AM.

On the 30-share Sensex, Tata Steel, Eternal, M&M, BEL, and PowerGrid started among the gainers, meanwhile the laggards included Infosys, Bharti Airtel, Bajaj Finance, ICICI Bank, and HUL.

In the broader markets, the Nifty Next50 inched up 0.43 per cent. Sectorally, the Metal index dominated in green as it surged 1.53 per cent. On the other hand, the Midsmall IT & Telecom index dipped 0.44 per cent.

GST Council Meeting: What To Expect

The Goods and Services Tax (GST) Council will hold its 56th meeting in New Delhi on September 3–4, with several reforms likely to be discussed that could directly impact businesses and consumers. The sessions, chaired by Union Finance Minister Nirmala Sitharaman, will bring together a 33-member panel of ministers and senior officials.

A major focus will be the restructuring of tax slabs. The current 12 per cent and 28 per cent rates may be scrapped, with goods in the 28 per cent bracket likely to shift to 18 per cent and items under 12 per cent moving to 5 per cent. However, luxury and sin goods, including tobacco, are expected to remain at the 40 per cent rate. Analysts note that such rationalisation could improve industry competitiveness while providing relief to consumers.

Auto Stocks In Focus

The automobile industry is in the spotlight, with expectations that GST on small hybrid cars and two-wheelers could be reduced from 28 per cent to 18 per cent. Sports utility vehicles (SUVs) may also see a cut from 50 per cent to about 40 per cent. Brokerage estimates suggest these changes could lower on-road vehicle prices by 6–8 per cent, fuelling stronger demand in the coming years. Investors will be keenly looking for indications about auto stocks.

How Did Markets Fare On September 2?

Notably, benchmark indices gave up early gains, with the Sensex ending over 200 points lower in the last trading session. The NSE Nifty also retreated 45.45 points, or 0.18 per cent, to 24,579.60 on Tuesday, after moving between 24,756.10 and 24,522.35 during the day.

GST Council Meets September 3: Here’s What To Expect On Taxes, Cars And Refunds

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