Mumbai (Maharashtra) [India], September 2 (ANI): The Indian stock market opened on a positive note on Tuesday, supported by strong economic indicators that have boosted investor sentiment, though tariff challenges continue to weigh on the outlook.

The benchmark Nifty 50 index opened at 24,665.15, gaining 40.15 points or 0.16 per cent, while the BSE Sensex started the day at 80,559.31, up by 194.82 points or 0.24 per cent.

The market mood has improved from last week as a series of robust economic data points have strengthened confidence in India's growth story.

Ajay Bagga, Banking and Market Expert, told ANI, 'A good macro backdrop and a strong PMI number for August sets a positive tone for Indian markets. US tariffs and continued FPI outflows are expected to be offset by strong domestic inflows and a consumption stimulus expected from the GST cuts.'

Bagga also shared that the GST Council meeting began on September 3, with announcements on the new GST 2.0 expected on September 4. This will provide further support to domestic equities.

Key economic indicators have underpinned the current market optimism. India's manufacturing PMI for August hit a 17-year high at 59.3, GST collections touched nearly Rs 1.90 lakh crore, quarterly GDP growth surged to a five-quarter high of 7.8 per cent, and July's IIP rose to a four-month high of 3.5 per cent. Additionally, robust two-wheeler sales data for August added to investor confidence.

According to Motilal Oswal's market outlook, momentum is expected to remain strong in two-wheelers, sugar, FMCG, and defense sectors. On the global front, US markets remained closed on Monday, while Asian markets opened on a mixed note on Tuesday.

The government's introduction of GST reforms is also expected to give a push to local consumption. At the same time, India is preparing to counter the impact of the proposed 50 per cent US tariff by diversifying its exports to European, Gulf, African, and other global markets.

In the broader market indices, the Nifty 100 opened in green with marginal gains, while the Nifty Midcap 100 slipped 0.19 per cent and the Nifty Smallcap 100 edged down by 0.03 per cent.

Sectoral performance on the NSE was mixed. The Nifty FMCG index gained 0.21 per cent, Nifty Media rose 0.86 per cent, and the Nifty Oil and Gas index was up 0.31 per cent. However, the Nifty Auto fell 0.24 per cent, Nifty IT declined 0.41 per cent, and the Nifty Pharma slipped 0.29 per cent in early trade.

Technical indicators also point towards market strength. Anand James, Chief Market Strategist at Geojit Investments, said, 'The successful close above the 24550-608 band and the Marubozu formed thereof is a vote of confidence on the mean reversion move. Favoured view hence expects the ongoing upmove to head into the 24697-809 band at least before any slowdown. Alternatively, pullback below 24550 could see bears returning.'

With strong domestic fundamentals, expectations of GST-driven stimulus, and healthy sectoral momentum, the markets are trading on a strong note in the positive in opening session. (ANI)