Indian Stock Markets Open Higher on GST Rate Cuts and Positive Sentiment
Mumbai, September 4 – Indian stock markets started the day on a strong note, boosted by big news of rate cuts announced by the GST Council. Investors were excited as key sectors saw significant benefits from these reforms.
As it happened in the morning, the Sensex jumped by 554 points, or about 0.69%, to reach 81,122. The Nifty gained 159 points, or around 0.64%, climbing to 24,874. Smaller and mid-cap indices also showed upward movement, with the Nifty Midcap 100 up slightly by 0.21% and the Nifty Small Cap 100 by 0.05%.
Biggest news is the reduction in GST rates across many everyday goods and services. The GST Council lowered rates on insurance, medicines, and daily essentials, providing big relief to households, farmers, and businesses. Around 90% of items that used to be taxed at 28% are now taxed at just 18%. Nearly all goods in the 12% category are now under 5%, making products more affordable for consumers.
In terms of sectors, the auto industry led the gains with the Nifty Auto index jumping by 2.51%. Fast-moving consumer goods (FMCG) also saw a rise of 1.73%. However, IT, Metal, and Pharma sectors traded with slight declines.
Some top performers in the Nifty pack included Hindustan Unilever, Grasim Industries, Bajaj Finserv, and Trent. On the other hand, Reliance Industries, NTPC, Hindalco, and HCL Technologies experienced mild declines.
Experts say that this GST reform, along with government stimulus measures, could set off a cycle of growth. They believe India’s economy could grow at around 6.5% in FY26 and even hit 7% in FY27, driven by strong corporate earnings and consumer spending.
Dr. VK Vijayakumar, a leading market strategist, said, “The GST changes are better than expected and will benefit many sectors. This boost to consumption comes at a good time for the economy’s growth momentum. Focus areas for investors will include autos, FMCG, white goods, cement, and insurance.”
He added, “There might be some short-term buying push today, pushing prices higher. But, longer-term, ongoing tariff issues could pose challenges for the market.”
Across Asia-Pacific, markets showed mixed results. Japan’s Nikkei rose by 1.23%, while China’s Shanghai and Shenzhen indexes fell sharply, dropping over 1.7% and 2.2%, respectively. Hong Kong’s Hang Seng dipped by about 1.06%, but South Korea’s Kospi gained a small 0.38%. Wall Street overnight saw mixed reactions: Dow Jones dipped slightly, while Nasdaq gained over 1%, and S&P 500 moved up by about half a percent.
Foreign investors, or FIIs, turned net sellers on Wednesday, pulling out Rs 1,666 crore from Indian stocks. Meanwhile, domestic investors bought shares worth Rs 2,495 crore, showing confidence in the Indian market.
Stay tuned for more updates on how these reforms and global trends shape the Indian economy!
