Mumbai: Indian stock markets witnessed a powerful rally today as investors cheered the new GST 2.0 reforms and anticipated higher consumer spending during the festive season.
The BSE Sensex gained more than 700 points, climbing to 81,457, while the Nifty 50 touched 24,981, marking fresh record highs. Market watchers noted that the reform-driven sentiment came at the right time, boosting confidence just ahead of Navratri and Diwali sales.
Key Drivers of the Rally
The primary trigger was the reduction in GST rates on everyday essentials and mid-range consumer goods. Items like soaps, shampoos, chocolates, and packaged foods moved into the lower 5% slab, while electronics and small cars dropped to 18% from 28%. This shift is expected to increase affordability and drive demand across rural and urban India.
Sectoral and Broader Market Impact
FMCG, auto, and consumer durable stocks led the surge, with companies like Hindustan Unilever, Maruti Suzuki, and Titan seeing strong buying interest. Banking and IT stocks also contributed, signaling broader confidence. Midcap and smallcap indices climbed sharply, reflecting enthusiasm beyond large-cap counters.
Regulatory Spotlight
In parallel, global investors closely tracked the dispute between U.S.-based trading firm Jane Street and SEBI over alleged market manipulation in Bank Nifty futures. While the case has raised questions on foreign participation, it had little immediate effect on today’s bullish mood.
Outlook Ahead
Analysts believe the market may sustain its momentum in the near term, supported by GST-driven consumption, festive optimism, and positive global cues. However, they also caution that inflation trends and global trade tensions remain key risks that could temper gains in the coming weeks.
