The Finance Minister Nirmala Sitharaman rings in Diwali early for the markets. Late Wednesday night, the GST Council approved the 2-rate structure and cut the GST rates across the board in a major overhaul. In reaction, the GIFT Nifty is trading close to the 25,000 mark in early trade.
Here are key domestic cues as well as key global triggers to watch out for before the market opens –
Earlier on Wednesday, the NSE Nifty 50 closed the session 135 points or 0.55% higher at 24,715, while the BSE Sensex rose 410 points or 0.51% to close at 80,568.
Key global and domestic cues to know on September 04, 2025
2-tier GST rate structure from September 22
The GST Council, at its 56th meeting, decided to revamp the tax structure into a two-rate system as proposed by the Central government. The decisions would come into effect from September 22 for most items. Apart from the two rates of 5% and 18%, the new GST system would also include a 40% “special rate” on sin goods such as tobacco and luxury items such as large cars, yachts, and helicopters. The revised rate structure is set to bring down prices of over 100 items and boost consumption.
“Today’s GST rate changes, along with RBI’s rate cuts, income tax rebates announced in FY26 budget and easing inflation are all levers for a consumption uptick in the economy. We expect a GST-related demand boost to add 100 to 120 bps to the GDP growth over the next 4-6 quarters, thereby nullifying the negative impact of higher tariffs on exports to the US. We remain constructive on the uptick in consumption demand in the economy as multiple policy levers turn favourable for the first time in a decade,” said Garima Kapoor, Economist and Executive Vice President at Elara Capital.
Asian Markets
The Asian markets rose in Thursday’s morning trade, tracking gains on Wall Street as tech stocks rallied. Japan’s benchmark Nikkei 225 rose 0.57% in early trading, while the Topix index increased 0.41%. Meanwhile, South Korea’s Kospi index traded 0.45% higher, and the small-cap Kosdaq added 0.84%. Futures for Hong Kong’s Hang Seng index stood at 25,332, slightly lower than its last close of 25,343.43.
US markets
The US markets closed Wednesday’s session on a higher note, boosted by a rally in tech stocks. The tech-heavy Nasdaq Composite gained 1.03% to end the day at 21,497.73, while the S&P 500 climbed 0.51% to finish at 6,448.26. The Dow Jones Industrial Average lagged, falling 24.58 points, or 0.05%, to settle at 45,271.23.
US dollar
The US Dollar Index (DXY), which measures the dollar’s value against a basket of six foreign currencies, was trading 0.04% lower at 98.11 on Thursday morning. The index evaluates the strength or weakness of the US dollar in comparison to major currencies. The basket contains currencies such as the British Pound, Euro, Swedish Krona, Japanese Yen, Swiss Franc, etc. The rupee appreciated 0.11% to close at 88.07 to the dollar on September 03.
Crude oil
The crude oil prices traded on a lower note on Thursday morning. WTI crude prices were trading at $63.59, down by 0.62%, while Brent crude prices were trading at $67.23, a fall of 0.55%.
FII, DII data
Foreign institutional investors (FII) were the net sellers of shares worth Rs 1,666.46 crore. On the other hand, the Domestic institutional investors (DII) were the net buyers of shares worth Rs 2,495.33 crore on September 03, 2025, according to the provisional data available on the NSE.
Gold rate today
The rate for 24-carat gold today is Rs 107,550 per 10 grams, trading at its all-time high for the fifth consecutive day. The safe haven’s price is trading above the Rs 1 lakh mark. The price of gold has risen by 5% over the past one week. The 22 kt gold rate today is Rs 98,588 per 10 grams. The 18-carat gold price today is Rs 80,663. The 24-carat gold rate in Dubai today is Rs 1,02,761.92.
Top sectors in Wednesday’s trade
The market action on Wednesday was led by iron and steel, which jumped 3%. Electronics followed with a gain of 2.7%, while mining stocks climbed 2%. Non-ferrous metal players were also in focus, adding 2%, and gems and jewellery names sparkled with a rise of 1.7%.
Best and worst performing business groups
Among business groups, the Anil Ambani Group stole the spotlight with a sharp 4% rise. Close behind, Jindal OP Group and Muthoot Group also posted strong advances of 3.38% and 3.37% respectively.
