Final Trade: Sensex, Nifty slip ahead of GST Council meet; sugar stocks sweeten broader market

Market closing bell: Benchmark equity indices ended lower on Monday after showing early strength, as traders booked profits ahead of the two-day GST Council meeting starting Wednesday and amid the weekly expiry of Nifty F&O contracts.

The BSE Sensex closed 257.63 points lower at 80,106, down 0.32 per cent, while the NSE Nifty50 settled at 24,548.40, slipping 76.65 points or 0.31 per cent.

Despite the benchmark weakness, Power Grid, Reliance Industries, NTPC, Tata Steel, HUL, and TCS emerged as top gainers on the Sensex, rising up to 2.8 per cent. Meanwhile, ICICI Bank, Asian Paints, M&M, and UltraTech Cement were among the major drags.

Mid and Small Caps Outperform

The NSE MidCap 100 index edged up 0.13 per cent, while the Nifty SmallCap 100 rose 0.31 per cent, reflecting continued investor interest in the broader market.

Sectoral Snapshot

Barring Nifty Healthcare (down 0.07 per cent), all sectoral indices closed in the green. Nifty Media led the gains with a 1.7 per cent jump, followed by Nifty Oil & Gas, Nifty Realty, and Nifty Metal.

Sugar Stocks Rally on Ethanol Push

In the broader market, sugar stocks surged up to 20 per cent after the government lifted restrictions on ethanol production from sugarcane juice, syrup, and molasses for the upcoming Ethanol Supply Year 2025-26. The move is expected to boost profitability for sugar producers and distilleries.

Outlook

All eyes now turn to the 56th GST Council Meeting on September 3-4, where key reform decisions are expected, potentially impacting sectors like insurance, online gaming, and energy.