Indian equity benchmarks experienced a muted trading session on Wednesday, as gains in several sectors were offset by a decline in IT stocks. Investors are also awaiting the outcome of the Goods and Services Tax (GST) Council meeting, where potential tax cuts on a variety of goods are expected.

At 10:16 a.m. IST, the NSE Nifty 50 was up 0.06% to 24,594.7, while the BSE Sensex also added 0.06% to reach 80,194.85. Broader market indices showed more positive movement, with small-caps and mid-caps gaining about 0.7% and 0.4%, respectively.

Sectoral Performance: Out of the 16 major sectors, 14 registered gains. The metal index emerged as the top performer, rising by 1.3%. According to analysts at CLSA, steel prices are expected to increase, aligning with global trends and strong seasonal demand. They believe that the worst is over for the metal sector, and Indian metal companies could benefit from China's efforts to tackle excessive competition and low prices.

The IT index, however, experienced a decline of 0.7%. This drop followed the release of U.S. economic data that revealed a contraction in manufacturing for the sixth consecutive month in August, signaling potential weakness in the world's largest economy. The performance of IT companies is closely linked to the U.S. market, as they generate a significant portion of their revenue from the region.

GST Council Meeting: The GST Council is scheduled to meet, and expectations of consumption-boosting tax cuts have kept auto and consumer stocks trading steadily. The council is reportedly considering lowering the consumption tax by at least 10 percentage points on approximately 175 products, including hybrid cars, shampoos, and consumer electronics.

Market analysts suggest that the benchmark index is in a period of uncertainty, with investors awaiting the GST Council meeting, which could trigger sectoral movements. Experts estimate that a 7–10% GST cut could lead to considerable price reductions for two-wheelers, small cars, tractors, and certain consumer goods. These are categories where buyers may have been delaying purchases in anticipation of lower rates.

Individual Stock Movements: * MOIL, a manganese ore producer, saw its shares jump by 6.4% after reporting a 17% year-on-year growth in production in August, with sales increasing by about 26%. * PNC Infratech, a construction company, gained 3% after securing a contract worth 2.97 billion rupees (approximately $34 million) from the Airports Authority of India for the extension of the runway at Varanasi airport. * Indus Towers, however, experienced a loss of about 5% after announcing its plans to expand into international markets. Analysts have expressed concerns about this move and the allocation of capital. * Apollo Micro Systems share price continues to rise on Wednesday, reaching ₹301.75 apiece on September 3. The defence stock has surged nearly 23 per cent in five days and 74 per cent in last one month.

Financials: On Tuesday, India's equity benchmarks reversed early gains to end lower, as an expiry-driven pullback in heavyweight financials offset a broad-based rally, while investors awaited a key Goods and Services Tax (GST) Council meeting later this week. The NSE Nifty 50 fell 0.18% to 24,579.60 and the BSE Sensex slipped 0.26% to 80,157.88. The indexes rose as much as 0.5% earlier in the session. The slide stems from expiry-driven unwinding in financials, which dominate the Nifty, two traders said. Financials ended 0.7% lower after climbing about 0.35% earlier in the session.