Synopsis : Indian stock markets soared after the government announced a major GST-rate revamp, simplifying slabs and cutting rates on essentials. Auto, FMCG, and consumer goods stocks led the rally, while global cues further supported sentiment.
The Indian equity markets opened on a strong note on Thursday, with the Sensex surging 400 points and the Nifty holding firm near 24,800, as investors cheered the government’s landmark move to revamp the Goods and Services Tax (GST) structure.
Finance Minister Nirmala Sitharaman unveiled an early Diwali surprise with the scrapping of the 12% and 28% GST slabs, shifting most products into two revised categories—5% and 18%, while certain luxury items moved into a new 40% bracket. The reform is set to roll out from September 22, 2025.
The market reaction was immediate, with auto stocks leading the charge, followed by consumer goods and FMCG. Analysts said the rate cuts on essentials like toiletries, packaged foods, utensils, and agriculture-related items would ease household budgets and reduce input costs, providing a boost to rural consumption and farm incomes. The auto and electronics sectors are also expected to see higher demand, driving manufacturing growth and job creation.
Market Movers:
Top gainers: Auto, FMCG, and consumer durable stocks
Sectoral boost: Tractors, tyres, irrigation systems, farm machinery, appliances, and electronics
Sentiment driver: Tax reforms aimed at consumer welfare and revenue efficiency
Global Market Cues:
Asian stocks also supported the rally, with Japan’s Nikkei 225 rising 0.57% and the Topix index up 0.41%. Hong Kong’s Hang Seng futures stood marginally lower at 25,332, while Wall Street ended Wednesday higher, driven by a tech rally—Nasdaq gained 1.03% and S&P 500 rose 0.51%.
With domestic reforms aligning with global positivity, market experts believe Indian equities could see extended momentum in the coming sessions.
Disclaimer : This article is for informational purposes only and should not be considered as financial advice. Investors should consult certified financial advisors before making any investment decisions.
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