Markets Pare Gains as GST Reform Momentum Fades by Midday—Here’s Why Traders Are Spooked
GST optimism evaporates faster than a shitcoin rally.
Early market gains reversed sharply by midday as traders dumped positions on fading GST reform momentum. The reversal caught bulls off guard—just like regulators always seem to be three steps behind crypto innovation.
No fresh catalysts emerged to sustain the morning rally. Volume dried up. Momentum indicators flipped red. Another classic case of buy the rumor, sell the news—assuming the news ever actually arrives.
Finance jab: Because nothing says 'stable reform' like watching traditional markets move at the speed of government bureaucracy while crypto runs circles around legacy systems.
Also read
Packaged food, FMCG players say GST rationalisation will boost consumer sentiment, spur demand revival
Mahindra & Mahindra continued to lead the gainers on the Nifty 50, surging 5.74 per cent to ₹3,474.50 despite paring some of its morning gains. Bajaj Finance climbed 4.34 per cent to ₹935.20, while Bajaj Finserv added 2.37 per cent to ₹2,012.60. Trent gained 1.93 per cent to ₹5,585.00, and Apollo Hospitals ROSE 1.68 per cent to ₹7,866.00.
On the downside, Tata Consumer Products declined 2.41 per cent to ₹1,077.80, leading the losers. HDFC Life fell 1.56 per cent to ₹764.30, while IndusInd Bank dropped 1.18 per cent to ₹759.00. SBI Life Insurance declined 1.15 per cent to ₹1,789.90, and Power Grid Corporation slipped 1.12 per cent to ₹282.85.
Also read
GST rate cut: Govt rules out anti-profiteering return, to work with industries on passing benefits to consumers
Market breadth remained weak with 2,034 stocks declining against 1,917 advances on the BSE. A total of 132 stocks hit 52-week highs while 40 touched 52-week lows. The broader markets showed mixed performance with Nifty Midcap 100 down 0.23 per cent at 57,216.00, while Nifty Financial Services gained 0.71 per cent to 25,914.65.
The GST Council on Wednesday approved a major overhaul of the indirect tax regime, replacing the existing four-tier structure with a simplified two-rate system of 5 per cent and 18 per cent, along with a special 40 per cent slab for select items. The new rates will come into effect from September 22, 2025.
Also read
GST Council Approves New Slabs: 40% on luxury goods, 5% on essentials
“The government’s MOVE to simplify GST by reducing slabs from four to three is a smart step. Essential and aspirational goods now largely fall under the 5 per cent and 18 per cent brackets, which makes the system simpler and fairer,” said Pranav Haridasan, MD and CEO of Axis Securities. “Unlike income tax cuts that benefit specific sections, GST rationalisation reaches everyone — especially rural households and the middle class.”
Nitin Rao, CEO of InCred Wealth, noted that “the GST cuts are here and have been announced quickly/efficiently with an element of urgency, to boost demand before the festive season.” However, he cautioned that “recent measures like the rate cuts + budgetary measures taken on reduced taxes have not created necessary consumption boosters.”
Sectoral indices showed mixed performance, with Nifty Bank gaining 0.22 per cent to 54,194.60, while broader indices like Nifty Next 50 declined 0.09 per cent to 67,407.25.
Published on September 4, 2025
