India's stock market surged today, taking cues from GST reforms that's set to make soaps to small cars cheaper for the “common man”.
The benchmark Nifty 50 rose 1.08% to 24,980.75, even as the wider BSE Sensex gained 882 points to open at 81,450.55.
The conditions are favourable for a bull run, and any further reduction in US tariffs could help markets scale new all-time highs soon.
Banking and market expert Ajay Bagga told ANI that Indian markets are well positioned for a pre-Diwali rally.
“We may take out the September 2024 all-time highs on the back of these positive triggers,” banking and market expert Ajay Bagga told ANI.
“The GST cut will boost consumption, formalisation and unleash festive cheer. If Trump drops the punitive 25% tariffs in addition, we may be setting up for a very remarkable Santa Claus rally for the Indian markets.”
Broader market indices on the National Stock Exchange also reflected the positive mood. The Nifty 100 gained more than 1%, Nifty Midcap 100 surged by over 1.09%, and the Nifty Smallcap index rallied more than 1%.
Among sectoral indices, Nifty Auto stocks jumped more than 3% as GST on cars below 1,200 cc was reduced from 28% to 18%.
{{/usCountry}}Among sectoral indices, Nifty Auto stocks jumped more than 3% as GST on cars below 1,200 cc was reduced from 28% to 18%.
{{/usCountry}}The FMCG index climbed 2.66% after GST was slashed to nil on several essential food items. Realty stocks also gained more than 1%, with all major sectors trading in the green.
“The Diwali gift of ₹48,000 crore is fiscally manageable. Completing two days GST Council meeting in one day shows urgency,” Nilesh Shah, managing director of Kotak Mahindra AMC, told ANI.
“This step lowers inflation, increases growth, boosts consumer sentiment, does not disturb fiscal consolidation, improves ease of doing business, and partially offsets adverse effects of tariffs.”