Indian Stock Market Extends Gains As GST Rate Overhaul Boosts Sentiment

The Indian stock market extended its winning streak on Thursday, closing higher for the fourth consecutive session.

Despite a range-bound trade marked by both profit booking and value buying, benchmarks ended the day in green.

The Sensex closed at 82,000.71, up 142.97 points or 0.17 per cent, after opening with a gap-up at 82,220.46 compared to Wednesday’s close of 81,857.84. The Nifty settled at 25,083.75, up 33.20 points or 0.13 per cent.

Market analysts said investors booked profits in Auto and FMCG counters while selectively buying into financial and pharma stocks.

“Indian equities ended mixed, as investors turned to profit booking after a recent rally and concerns over premium valuations due to subdued Q1 earnings,” noted Vinod Nair, Head of Research, Geojit Financial Services.

GST Reform Announcement Lifts Market Sentiment

In a significant development, the Group of Ministers (GoM) on GST rate rationalisation approved a proposal to replace the four-rate structure with dual rates of 5% and 18%.

“This marks the first major step in implementing next-generation GST reforms announced by Prime Minister Narendra Modi in his Independence Day address,” said Siddhartha Khemka, Head of Research, Motilal Oswal Financial Services.

He added that India’s record-high composite PMI in August, reflecting strong momentum in both manufacturing and services, is likely to support near-term stability.

Among Sensex constituents, Bajaj FinServ, ICICI Bank, Bajaj Finance, L&T, BEL, Sun Pharma, and Titan emerged as top gainers. On the other hand, PowerGrid, Hindustan Unilever, NTPC, Mahindra & Mahindra, and Tata Motors closed in the red.

Sectorally, Nifty Financial Services (up 0.32%) and Nifty Bank (up 0.10%) ended higher, while Nifty Auto (down 0.36%) and Nifty FMCG (down 0.64%) slipped. Nifty IT closed flat.

The broader markets showed weakness as Nifty Midcap 100 fell 221 points or 0.38%, while Nifty Small Cap 100 and Nifty 100 closed flat amid selling pressure.

Analysts expect markets to remain supported by optimism around GST reforms and an improving corporate earnings trajectory.

The rupee closed weaker at 87.22 per dollar, down 0.17%, as investors reacted cautiously to GST restructuring.

Also Read: Indian Retail Sector To Touch $1.93 Trillion By 2030: Deloitte–FICCI Report