The Indian equity indices fell sharply to end the session nearly one per cent lower on Thursday -- a day after the 50 per cent US tariffs on Indian goods came into effect.

Sensex ended the session at 80,080.57, down 705 points or 0.87 per cent. The 30-share index started the session in negative territory at 80,754 against last session's closing of 80,786.54 amid selling across the sectors. The Index further extended the losing momentum to hit an intra-day low at 80,013.02 following the implementation of US tariffs on Indian goods.

Nifty settled at 24,500.90, down 211.15 points or 0.85 per cent.

The government’s plan to simplify the Goods and Services Tax (GST) structure

The starting point of India's macro balance sheet is positively positioned, underpinned by a robust macro-stability framework (fiscal consolidation and flexible inflation targeting framework), productivity enhancing policy reforms, and favourable structural factors such as demographics, that lend support to the growth trajectory, a Morgan Stanley report said on Thursday.

The report expects growth to average 6.5 per cent in the next 10 years, with inflation likely to align with the RBI's target of 4 per cent, thus providing a favourable backdrop to the cost of capital and ensuring debt sustainability.

"India's overall indebtedness levels reflect an incipient inflexion with a rise in private sector leverage. We expect private sector debt to continue to see modest expansion while public sector debt decline keeps overall debt manageable and improves the productivity of incremental debt," said the report.

The shares of InterGlobe Aviation, the parent company of IndiGo Airlines, tanked over 4 per cent in the early trading on Thursday on news of promoter Rakesh Gangwal's family selling stocks worth Rs 7,085 crore through a block deal.

At around 11:38 am, the shares were trading at Rs 5,789.0, down 4.31 per cent or Rs 261.

The promoter family is likely to sell 1.2 lakh shares, worth Rs 7,085 crore, at an average price of Rs 5,830 per share.

According to earlier media reports, the Gangwal family plans to sell up to 3.1 per cent of InterGlobe Aviation through block deals valued at approximately Rs 7,020 crore.

A floor price of Rs 5,808 per share, or about 4 per cent less than the closing price of the previous session, was anticipated for the block deal.

The upcoming Goods and Services Tax (GST) reforms, which aim to cut rates and boost private consumption, could offset the US tariff impact, BMI, a Fitch Solutions company, said on Thursday, adding that India is likely to remain one of the fastest-growing emerging market economies in Asia through this decade.

India's GDP is projected to hold above 6 per cent, even as additional US tariffs hit certain industries, according to the note by BMI.

"We forecast India's economic growth to steadily slow to just above 6.0 per cent by the decade's end, slightly below the 2010-2019 pre-pandemic average of 6.5 per cent, yet still positioning India among Asia's fastest-growing economies," BMI said.

It further stated that productivity is projected to grow around 5 per cent over the coming decade, providing substantial momentum to GDP growth.

After remaining shut for a day on account of Ganesh Chaturthi, the domestic benchmark indices opened in the red on Thursday after the US imposed 50 per cent tariffs on Indian goods.

The BSE Sensex dropped by 624 points, or 0.77 per cent, to touch 80,162 in the early trade. The Nifty 50 declined by 183.85 points, or 0.74 per cent, to 24,528 points.

Broadcap indices were firmly in red as Nifty Midcap 100 fell 1.00 per cent, while Nifty Smallcap 100 was down 1.12 per cent.

Among sectoral indices, Nifty IT lost 1.24 per cent, Nifty Pharma was down 0.97 per cent, and Nifty Realty slipped 1.42 per cent. All sectoral indices were in the red.

India continues to show resilience, securing the second position on the national 'Consumer Sentiment Index', despite a 3.3 percentage point decline in consumer sentiment in August, a report said on Wednesday.

The dip is attributed to the impact of Trump-era tariffs and broader macroeconomic factors, according to the latest LSEG-Ipsos Consumer Sentiment Index.

Other markets that experienced significant declines in consumer sentiment include Indonesia (-3.7 pp), Poland (-2.8 pp), Germany (-2.5 pp), Colombia (-2.5 pp), and France (-2.2 pp), Ipsos said in its report.

According to the report, meanwhile, Malaysia leads the 30 markets tracked on the National Index, with a strong 6.7 percentage point surge in consumer sentiment.

The Goods and Services Tax Council, scheduled to meet on September 3, will likely discuss ending the compensation cess by October 31, ahead of schedule.

The GST compensation cess was set to end on March 31, 2026. Discussions, however, have started to conclude the cess collection earlier, as the loans taken during the Covid-19 pandemic to compensate states for revenue shortfalls are approaching full repayment, according to multiple media reports.

The repayment is expected to be completed around October 18, but the government may extend the levy until the end of October for smooth operations.

Reports citing government sources indicated that the cess collection may result in a surplus of about Rs 2,000–3,000 crore to be shared equally between the Centre and the states.

Public sector companies have once again proved to be attractive for investors seeking steady income, as many of them announced hefty dividend payouts over the past 12 months.

For long-term investors, these stocks not only offer capital appreciation but also provide regular income through dividends.

Dividends are the portion of a company’s profit distributed to its shareholders, typically paid quarterly, semi-annually, or annually.

Among state-owned firms, Coal India stood out with the highest dividend payout of Rs 32 per share, delivering a dividend yield of 8.6 per cent.

Dividend yield refers to the annual dividend income expressed as a percentage of the stock’s current market price -- an important metric for income-focused investors.

Power Finance Corporation (PFC) rewarded shareholders with Rs 19.5 per share -- reflecting a yield of 5 per cent, while REC Limited paid Rs 19.1 per share, also translating into a 5 per cent yield.

As the higher US tariffs against Indian goods set to come into effect from Wednesday (US time), sectors such as textiles and gems and jewellery — both labour-intensive industries — are expected to face moderate pressures while pharmaceuticals, smartphones and steel are relatively insulated due to exemptions, existing tariff structures and strong domestic consumption.

A new SBI Research report believes that the US tariffs are likely to affect the US GDP by 40-50 bps and higher input cost inflation.

“As $45 billion of export will be impacted due to 50 per cent tariffs, at worst scenario, India’s trade surplus will convert to trade deficit. However, we believe trade negotiations will restore confidence and improve export to US,” the report mentioned.