Following the decision to reduce GST rates, the Indian stock market witnessed a significant surge on September 4, 2025. The Sensex approached 81,456 points and the Nifty reached close to 24,890 points. The FMCG, Healthcare, Education, and Auto sectors saw an uptick. Meanwhile, the price of gold hit a record high of $3,563 per ounce, and Asian markets also advanced.
Stock Market Today: The impact of the decisions made at the GST Council meeting held in New Delhi on September 3 was clearly visible in the stock market on September 4. Reducing the tax slabs to just 5% and 18%, and lowering GST on essential items boosted investor confidence. The BSE Sensex opened at 81,074 and climbed to 81,456 points, while the Nifty traded at the 24,890 level. The FMCG, Healthcare, educational materials, and automobile sectors showed buoyancy. Globally, Wall Street and Asian markets also strengthened, while gold marked a new record.
Market Opened with Vibrancy
Today, the BSE Sensex opened at 81,074.97 points and within a short time reached 81,456.67. Similarly, the NSE Nifty made a positive start and traded at the 24,890.15 point level. This change, coming before the festive season, has given a new direction to the market.
Yesterday Was Sluggish
On September 3, the market had experienced a decline. On that day, the Sensex closed down by 206.61 points at 80,157.88. The Nifty also slipped by 45.45 points to close at 24,579.60 points. This decline for the second consecutive day clearly showed concern on the faces of investors. However, the picture has completely changed today.
Surge in Gold Prices
The market uncertainty had a clear impact on gold. Investors turned towards safe investments, and gold prices surged to $3,563 per ounce. This is the highest level ever recorded.
Mixed Trend in US Markets
The US stock market saw mixed trading yesterday. Shares of Google's parent company, Alphabet, rose by about 8 percent. The company received relief in a legal case, which directly impacted its stock. However, new job opportunities in the US recorded a decline. There was a shortfall of 176,000 jobs in July, bringing the total opportunities down to 71.81 lakh. This weakness made investors ponder about the Federal Reserve's next move regarding interest rates.
Due to weak US employment data, the expectation of a potential interest rate cut by the Federal Reserve increased. This possibility also led to an advance in Asian stock markets. Markets in Japan, Hong Kong, and Korea registered strength.
Bullish Sentiment Driven by GST Council Decisions
The GST Council has reduced taxes on several products, ranging from daily necessities to education, health, electronics, and automobiles. Now, only two slabs will remain: 5 percent and 18 percent. The 12% and 28% slabs have been completely abolished. This move has boosted investor confidence.
Top Gainers and Losers
In today's trading, stocks of companies in the FMCG and Auto sectors experienced a tremendous surge. These companies are directly benefiting from the tax reduction on consumer goods. Shares of healthcare and education-related companies also climbed rapidly.
Conversely, shares of companies related to coal and tobacco saw a decline. The tax on coal has been increased from 5 percent to 18 percent, putting pressure on coal-based industries. Taxes on tobacco and cigarette companies have reached 40 percent, which has impacted their stocks.
