Sensex Surges 555 Points on Value Buying Amid Strong GDP Growth

The Indian stock market rebounded on September 1, 2025, with the BSE Sensex gaining 555 points or 0.70% to settle at 80,364.49. The Nifty spurted by 198.20 points or 0.81% to close at 24,625.05. The gains were driven by value buying in IT, auto, and banking shares, as well as strong GDP data, which showed India's economy grew by 7.8% in Q1. The gains were led by Mahindra & Mahindra, Tata Motors, Trent, and Infosys.

The Indian stock market demonstrated resilience on September 1, 2025, as the BSE Sensex gained 555 points or 0.70% to settle at 80,364.49, while the Nifty surged by 198.20 points or 0.81% to close at 24,625.05. The market's performance was buoyed by strong GDP data, which revealed a robust 7.8% growth in the first quarter of the current financial year 2025-26 [3].

The gains were primarily driven by value buying in IT, auto, and banking shares. Mahindra & Mahindra, Tata Motors, Trent, and Infosys were among the key performers, contributing significantly to the market's overall upswing [1]. The IT sector, in particular, stood out as the top gainer, with the Nifty IT index rising over 1.2% [1].

The market's performance was also influenced by the broader economic backdrop, with investors closely monitoring developments around India-US trade relations. The US Court of Appeals for the Federal Circuit ruled that US President Donald Trump had overstepped his presidential authority by imposing broad levies on major trading partners, including India. However, the court kept the tariffs in place [1].

In addition to the IT sector, the Nifty PSU Bank and Auto indices also showed gains, rising by 0.5% each. On the downside, the Nifty Realty and FMCG indices were marginally in the red [1].

The Indian rupee hit an all-time low on Monday, opening flat at 88.20/$ against the US dollar, reflecting the market's uncertainty and investor sentiment [1]. Gold and silver prices on the MCX also hit record highs, with MCX Gold reaching ₹1,04,900/10 grams and silver hitting ₹1,24,141 per kg, amid tariff-led uncertainty [1].

Overall, the Indian stock market displayed a positive trajectory on September 1, 2025, driven by strong GDP data and sector-specific gains. Investors will continue to monitor the market's performance and track key economic indicators and geopolitical developments.

References:
[1] https://www.business-standard.com/markets/news/stock-market-live-updates-september-1-nse-bse-sensex-today-nifty-ril-shares-india-china-talk-trump-tariffs-gst-meet-125090100061_1.html
[2] https://finance.yahoo.com/news/mahindras-suv-sales-dealers-dip-090542938.html
[3] https://timesofindia.indiatimes.com/business/india-business/india-gdp-growth-q1-fy26-live-updates-first-quarter-indian-economy-growth-gross-domestic-product-data-donald-trump-tariffs/liveblog/123580996.cms