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Below the Quote on Market 04th September 2025 from Vinod Nair, Head of Research, Geojit Investments Limited

"After a promising start, the domestic market closed almost flat as profit booking emerged across the market except for consumption oriented beneficiary sectors such as Auto, Finance, and FMCG. In-line outcome of GST rationalisation and ongoing tariff threats from the US exerted a negative impact on the market today. Given that the US is India's largest export destination, accounting for 2.2% of the GDP, the repercussions are inevitable. Companies are exploring ways to maintain exports to their existing clients through strategies like cross-country billing and setting up manufacturing units abroad. However, exports are expected to slow down and hinder new growth opportunities. On the brighter side, the GST rate cut is expected to significantly boost domestic consumption demand, countering the adverse effects of diminished export competitiveness. Sectors such as Textiles, Equipment Manufacturers, Metals, Auto Ancillaries, Seafood, Basmati, Jewellery, IT, and Pharma are likely to experience more impact which will be mitigated by increase in domestic consumption like Durables, Discretionary, Staples, Hotels, FMCG, Electronics, and Autos."

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