Stock Market Wrap: Nifty, Bank Nifty End Weak; GST Expectations Keep Investors on Edge
Mumbai, August 25, 2025 (The Market Times):
The Indian stock market witnessed a volatile session on Monday as both Nifty 50 and Bank Nifty showed weakness, despite hopes of a stronger opening. By the close, Nifty ended 98 points higher at 25,139, but Bank Nifty remained flat, signaling uncertainty ahead of the crucial GST Council meeting scheduled for September 3–4.
Nifty Tests 100-Day EMA, Struggles Near 25,000
The Nifty 50 index precisely touched its 100-day exponential moving average (EMA) during the day, attempting a bounce-back but failing to sustain above the 25,000 mark. Bank Nifty, on the other hand, formed a Doji candlestick pattern, reflecting indecision among traders.
Market experts highlighted that 55,000 remains a key support for Bank Nifty. A break below could trigger a sharper fall towards 53,500 levels, considering the head-and-shoulders pattern visible on charts.
Weak Economic Outlook Dampens Sentiment
Despite government announcements on potential GST rate cuts and tax reforms, analysts remain cautious. Many believe such moves reflect the underlying weakness in the economy rather than strength.
Exports remain under pressure due to global tariffs.
Domestic demand has stalled, as consumers delay purchases in anticipation of lower prices after GST revisions.
“Expectations of GST cuts are hurting demand in sectors like automobiles and consumer durables, where buyers prefer to wait for clarity,” said one market analyst.
Advance-Decline Ratio Highlights Market Pressure
Market breadth remained weak. By the end of the day, 1,700 stocks declined against 1,000 advancers, highlighting persistent selling pressure in the broader market. Midcap and smallcap indices also ended flat, failing to provide support.
Global Cues and Recession Concerns
International markets added to the nervousness. The Dow Jones was down 225 points, while global supply chains continue to face disruptions due to tariff wars. Analysts warned that the artificially created recessionary environment will have a prolonged impact on corporate earnings, especially in the upcoming Q2 results season.
Top Gainers and Losers
Top Gainers: Infosys (+3%), TCS (+2.5%), HCL Tech (+2.5%), Wipro (+2%). Buying interest was strong in IT stocks, indicating value accumulation.
Top Losers: Adani Enterprises, Apollo Hospitals, Nestle, SBI — all witnessed selling pressure.
Among broader markets:
Big gainers included AS (+10%), E Clux (+9%), and select construction and agri-equipment companies.
Top losers were Sundaram Finance (–5.5%), Reliance Power (–5%), and Emami (–4.5%).
GST Notices Add to Pressure on Midcap Companies
Fresh GST demand notices created headwinds for smaller companies:
VA Tech Wabag received a GST demand of ₹69.2 crore with penalties taking the total to over ₹600 crore.
Mukka Proteins was issued a GST demand of ₹4.37 crore for FY22–24, with additional liabilities for FY25.
Such developments highlight the financial strain midcap and smallcap companies may face as tax-related disputes intensify.
Sectoral Buzz: Paper Stocks Rally, Defense Deal Cancelled
Paper stocks surged sharply: West Coast Paper rose 14%, while J&K Paper gained on heavy volumes. Traders speculated that the government may reduce GST on education-related materials.
On the flip side, shares of Mazagon Dock slipped after reports suggested the ₹70,000 crore submarine deal with Germany’s ThyssenKrupp was cancelled, denting sentiment in the defense space.
Outlook: All Eyes on GST Council Meeting (Sept 3–4)
With the GST Council meeting set for early September, traders expect significant policy announcements that could impact multiple sectors. Analysts advise caution, suggesting that large positions should be avoided until clarity emerges.
“The market is likely to remain volatile in the run-up to the GST meeting. Investors should stay alert and avoid aggressive bets,” one expert noted.
Key Takeaway
Nifty 50 closes at 25,139 (+98 points).
Bank Nifty flat near 55,000 crucial support.
IT stocks led gains; Reliance Power, Sundaram Finance dragged.
GST policy uncertainty, global tariffs, and weak demand continue to weigh on sentiment.
📌 Disclaimer: This article is for informational purposes only. Investors should consult their financial advisor before making any investment decisions.
