Indian Markets Surge: Nifty Nears 25,000 on Sweeping GST Tax Overhaul
Indian stocks surge on GST tax cuts and Fed rate-cut optimism—Nifty climbs past 24,800, Sensex rallies above 81,000
Indian Markets Surge: Nifty Nears 25,000 on Sweeping GST Tax Overhaul
GST reforms sent Indian equities on a rally today. The Nifty 50 climbed above 24,800, and the Sensex surged past 81,000, reflecting renewed investor optimism.
Key Drivers:
The rally stems from a sweeping GST Council overhaul: a shift to a two-slab system (5 % and 18 %), reduced taxes on essentials, and relief in the auto and stationery sectors—all aimed at sparking demand ahead of the festive season.
Concurrently, global markets are buoyed by growing expectations of a U.S. interest-rate cut, amplifying investor confidence.
Market Reaction:
Major sectors advanced—15 out of 16 saw gains. Small- and mid-caps climbed, while auto, financials, and FMCG led the charge.
Mid- and small-cap indices were supported by broad buying.
What Analysts Say:
Experts anticipate that if Nifty locks past the 24,800–25,000 zone, a sustained uptrend could follow. However, caution prevails if global or macro cues disappoint.
Background:
Yesterday's gains followed GST-driven optimism. The benchmarks ended modestly higher, with Nifty closing above 24,700 and Sensex adding roughly 150 points.
Global Context:
Asian markets mirrored the ascent, lifted by weakened U.S. labor data and dovish sentiment, reinforcing the case for a Fed rate cut.
Looking Ahead:
Traders will watch whether Nifty maintains momentum above 24,800 and how global cues, especially from the U.S., unfold. The GST stimulus is expected to fortify consumption in the coming weeks.
