Markets Dip Ahead of GST Meet; Auto & Power in Focus

The Indian stock market had a roller-coaster ride today (September 2, 2025). After opening strong, both Sensex and Nifty slipped into the red by the end of the session. The Nifty closed below 24,600 while the Sensex lost nearly 750 points from its intraday high.

So, what exactly happened? Let’s break it down in simple terms.

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Why Did the Market Fall Today?

• Profit booking: Investors decided to lock in recent gains, especially in large-cap stocks.
  
• Global cues: Weakness in overseas markets added to the nervousness.
  
• Expiry pressure: The derivatives expiry led to some heavy unwinding of positions.
  

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All Eyes on GST Council Meeting

The big event everyone is waiting for is the GST Council meeting on September 3–4. There’s buzz around possible tax cuts:

• Consumer electronics could see ~10% GST reduction.
  
• Hybrid cars and certain auto components may get relief.
  

This is why auto and consumer stocks are still catching investor attention despite the overall market weakness.

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Sectors & Stocks in Focus

• Auto: Hero MotoCorp reported an 8% YoY jump in August sales, boosting confidence in the sector. Maruti and Tata Motors also saw strong trading activity.
  
• Power: Power Grid stood out, rising nearly 2.5% while most sectors were under pressure.
  
• Banking & IT: HDFC Bank and Infosys weighed on the indices, reflecting broader profit booking.
  

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What Investors Should Watch Next

1. GST Council decisions – Any cut in taxes can provide a short-term boost to auto and consumer stocks.
   
2. SEBI’s new rules on derivatives – From October 1, stricter caps will apply on intraday trades, which may change market dynamics.
   
3. Global trends – US and Asian markets continue to influence sentiment at home.
   

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Bottom Line

Today’s fall was more about profit booking and short-term expiry pressure than a fundamental shift. The coming week, especially the GST Council outcome, will be crucial for market direction.

For long-term investors, this dip could be a chance to look at quality names in auto, power, and large-cap banking stocks.

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