Indian Markets Open Firm On GST Optimism

Indian benchmark indices opened higher on Tuesday as investor sentiment improved on expectations of next-generation Goods and Services Tax (GST) reforms. The upbeat outlook pushed both Sensex and Nifty into positive territory during the morning session.

The Sensex gained 195.01 points, or 0.24 per cent, to reach 81,468, while the Nifty 50 climbed 46.30 points, or 0.19 per cent, to touch 24,923.

The broader markets also reflected buying activity. The BSE SmallCap index rose by 0.30 per cent, while the BSE MidCap index edged up 0.11 per cent.

Among Nifty’s top performers were Bharti Airtel, which rose 1.76 per cent, along with Hero MotoCorp and NTPC. However, Shriram Finance, Bajaj Finance, Bajaj Finserv, Maruti Suzuki, and Hindalco emerged as the day’s laggards.

Sector-wise, Nifty Oil and Gas advanced 0.71 per cent, while most indices posted moderate gains of up to 0.60 per cent. Nifty Auto slipped 0.24 per cent, correcting slightly after a strong 4 per cent rally in the previous session.

Market Experts Share Insights

VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted that geopolitical cues also influenced sentiment.

“The talks in the White House indicate a reasonable chance of ending the war, which could eliminate secondary tariffs on India. This may prove positive for the market,” he said, though cautioning that expecting quick responses from the Trump administration might be premature given the global environment.

Analysts also pointed to technical signals.

“On the daily chart, Nifty formed a shooting star, hinting at a possible pullback towards 24,700. However, hourly RSI shows bullish divergence, suggesting scope for an upward move. With the FII long-short ratio at just 8 per cent, short covering could trigger a rally,” observed Mandar Bhojane of Choice Broking.

Asian markets traded mixed in the morning session. The Shanghai Composite and Shenzhen indices both advanced 0.34 per cent, while Hong Kong’s Hang Seng Index rose 0.02 per cent. In contrast, Japan’s Nikkei slipped 0.14 per cent and South Korea’s Kospi dropped 0.35 per cent.

US markets showed subdued movement overnight. The Dow Jones Industrial Average dipped 0.08 per cent, the Nasdaq gained a marginal 0.03 per cent, and the S&P 500 closed nearly flat with a 0.01 per cent decline.

On Monday, foreign institutional investors became net buyers after four consecutive sessions of selling, purchasing equities worth ₹551 crore. Domestic institutional investors were also strong buyers, adding ₹4,104 crore to their holdings.

The twin support of GST reform optimism and renewed investor confidence continues to provide momentum for Indian markets, even as global cues remain mixed.

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