Indian equity benchmarks surged on Thursday after sweeping GST rate cuts were announced by Finance Minister Nirmala Sitharaman, lifting investor sentiment across sectors.
At 9:16 AM, the Nifty50 was trading at 24,886.50, up 171 points (0.69%), while the BSE Sensex stood at 81,135.26, gaining 568 points (0.70%). Analysts said the GST Council’s decisions would act as the immediate market driver, with sector-specific momentum expected in the coming sessions.
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, called the GST reforms “revolutionary” and said the changes could trigger a virtuous cycle of growth. Lower consumer prices are expected to lift demand, potentially driving India’s GDP growth to 6.5% in FY26 and 7% in FY27.
“Autos are likely to outperform, along with FMCG, white goods, cement, and insurance,” he noted, adding that short covering could push stocks higher in the near term.
Global Cues Supporting
- Wall Street: Nasdaq gained 1%, while S&P 500 also finished higher after a U.S. court ruling favored Alphabet.
- Asia: Markets advanced on expectations of Federal Reserve rate cuts following softer U.S. employment data.
- Gold: Prices remained steady near record highs amid global uncertainty and rate cut hopes.
Institutional Flows
Foreign portfolio investors sold shares worth ₹1,666 crore on Wednesday, while domestic institutional investors were net buyers at ₹2,495 crore, providing support to the market.
Outlook
While GST cuts have lifted sentiment and given equities a strong start, analysts caution that tariff concerns from U.S. trade policies may resurface as a headwind. In the short term, auto, FMCG, and consumer goods stocks are likely to remain in focus.
