As investors await the GST meeting, the Indian stock market declines as electric vehicle stocks rise.

Early September 2025 saw a mixed performance from the Indian stock market as investors managed pressure to take profits while waiting for important economic events. Ahead of the GST Council meeting on September 3–4, selling in banking and auto companies caused the Sensex and Nifty indices to close lower on September 2, 2025, with the Sensex falling roughly 207 points and the Nifty sliding 45 points.

The Nifty 50 was trading close to 24,630 points, a critical technical mark, which is its 100-day exponential moving average. Maintaining above this level, according to experts, might drive the index closer to 25,000, while a decline below 24,420 points could lead to a retest of August lows at 24,330 points. Despite a cautious start, the market saw gains in the middle of the day, with mid-cap and small-cap stocks seeing a robust rally and outperforming the market indices as a whole.

While companies like Dr. Reddy's, M&M, and ICICI Bank dragged on the indices, Nifty Realty, Oil & Gas, and Consumer Durables showed increases on a sector-by-sector basis. With 3%–4% increases in Bajaj Auto, M&M, Tata Motors, and Hero Motocorp, auto stocks led the gains. With Ola Electric rising more than 14% in response to encouraging government policy signals, PLI certifications, and the relaxation of rare earth material limits announced at the SCO Summit, the electric vehicle market attracted a lot of interest. Strong investor sentiment helped Ather Energy reach all-time highs as well.

The National Stock Exchange (NSE) made a big operational adjustment in September 2025 by moving the weekly F&O expiry from Thursday to Tuesday, in addition to the stock movements. Trading strategies are anticipated to evolve as a result of this shift, with Mondays becoming crucial for position adjustments because of the quicker premium decay over the weekend. It is recommended that traders adjust their risk management strategies when the characteristics of market volatility change.

As part of their suggestions, some brokers have suggested purchasing stocks with bullish technical patterns and positive momentum indicators, such as Coforge and BlueStar. Based on recent breakout patterns, BlueStar is aiming for Rs 2100, while Coforge is eyeing a range up to Rs 1880.

Although there are some worries about profit-booking and geopolitical dangers, overall market sentiment is still cautiously optimistic due to positive economic indicators, such as robust GDP growth and improved factory activity. The two primary things that market players are still keeping a close eye on are the forthcoming GST Council meeting and the volatility of commodities globally.