Market Highlights :
- Sensex surged over 700 points, crossing the 81,100 mark during intraday trade.
- Nifty 50 reclaimed the 24,900 level, with several sectors witnessing broad-based gains.
- The rally was driven by strong buying interest in FMCG, auto, banking, and realty stocks, sectors directly benefiting from GST reductions.
Why the Rally?
The GST rate cuts were aimed at easing consumer spending pressures and stimulating demand. Lower tax slabs on essential goods, auto components, and select services have renewed investor optimism. Market experts believe this move will provide:
- Higher consumption demand in the upcoming festive season
- Stronger earnings outlook for consumer-driven companies
- Improved liquidity and sentiment across retail and institutional investors
Sectoral Performance :
- FMCG & Consumer Goods: Stocks rallied as tax cuts on packaged food and household items are expected to drive demand.
- Automobile: Reduced GST on two-wheelers and auto parts boosted auto stocks, lifting the Nifty Auto index.
- Banking & Financials: Positive credit growth outlook pushed major lenders higher.
- Real Estate: Lower GST on affordable housing projects brought fresh momentum to realty counters.
Global Market Influence :
Apart from domestic triggers, global cues also supported Indian equities. Soft U.S. job data and expectations of a Federal Reserve rate cut led to stable foreign fund inflows. However, concerns over China’s regulatory tightening capped some gains in Asian markets.
Expert View :
Market strategists suggest that if the momentum sustains, Nifty 50 could reclaim the 25,000 level in the near term. Long-term investors are advised to remain selective, focusing on consumption-driven sectors and companies with strong balance sheets.
Conclusion :
The GST rate cuts have acted as a strong catalyst, fueling a market rally and lifting investor sentiment. With festive demand around the corner and supportive global cues, Indian equities are likely to remain on an upward trajectory in the short term.
