India’s markets regulator, SEBI (Securities and Exchange Board of India), has proposed a phased restructuring of major equity indices tied to derivatives to reduce risks of manipulation

SEBI wants indices like Nifty Bank (NSE), Bankex (BSE), and Nifty Financial Services to include at least 14 stocks, ensuring broader representation

No single stock should hold more than 20% weight, and the top three constituents combined should not exceed 45%

For instance, HDFC Bank and ICICI Bank currently dominate Bank Nifty with 29.09% and 26.47% weight respectively—far above the proposed cap

Market participants have shown a preference to restructure existing indices rather than launch new ones, to avoid disruption in derivatives-linked contracts

While BSE indicated it could implement these changes in one go, SEBI is seeking feedback on the plan until September 8, 2025

Reliance Industries (RIL) shares gained up to 2.84% to ₹1,421 on the NSE, extending gains for a second straight session after Reliance Jio announced changes to its prepaid plans.

Jio has discontinued its entry-level packs — ₹209 (22 days, 1GB/day) and ₹249 (28 days, 1GB/day). The new starting plan is ₹299 for 28 days (1.5GB/day), bringing Jio in line with Bharti Airtel and Vodafone Idea.

Brokerages see the move as a positive:

Morgan Stanley: Notes the lowest 28-day daily data plan now starts at ₹299.

IIFL: Limited direct impact (under 2% revenue boost).

Axis Capital: Expects 4–5% higher revenue and ARPU by FY26.

Interestingly, Indian Overseas Bank (IOB) was the only PSU bank trading in the green, showing minor gains despite the broader sell-off.

Prime Minister Narendra Modi has announced GST 2.0, promising lower tax rates on most goods and services. Economists believe this move will act as a “Diwali gift” by reducing the tax burden on citizens. The reforms are also expected to cool inflation further, creating space for the Reserve Bank of India (RBI) to ease monetary policy. With inflation under control, analysts suggest the RBI could announce a rate cut as early as October. Morgan Stanley has projected one more cut in the upcoming policy review. UBS also expects further easing, with the terminal repo rate likely to settle between 5–5.25%. The brokerage estimates a 25–50 basis points cut in FY26 to support growth. Lower interest rates will benefit businesses and consumers, boosting overall economic momentum. GST 2.0 thus marks a major policy shift combining tax relief and growth support. The coming months will be crucial to see how these reforms shape India’s economic outlook..