Indian stock markets opened on a strong note Thursday, cheering the GST Council’s landmark decision to simplify the Goods and Services Tax system. The BSE Sensex climbed 888.96 points to touch 81,456.67, while the NSE Nifty jumped 265.7 points, closing in on the 25,000 mark at 24,980.75.
The council announced that from September 22 — coinciding with the start of Navaratri — GST will be restructured into just two slabs, 5% and 18%. This rationalization is set to make several everyday items cheaper, offering immediate relief to households. Products like roti, paratha, hair oil, ice cream, and televisions will now fall under lower tax brackets. In a significant consumer-friendly step, taxes on life and health insurance have been scrapped altogether.
Market experts believe this reform will lift household demand and consumption, providing a boost to the overall economy. Mahindra & Mahindra led the rally with gains of over 7.5%, while Bajaj Finance, Hindustan Unilever, Bajaj Finserv, ITC, Tata Motors, and UltraTech Cement also recorded strong gains. On the flip side, companies such as Eternal, Tata Steel, NTPC, and HCL Tech ended in the red.
VK Vijayakumar, Chief Investment Strategist at Geojit Investments, welcomed the move, saying: “The biggest winner is the Indian consumer who will now pay lower prices. This could push up spending and support further economic growth.”
Global cues were mixed. While stock markets in South Korea and Japan were trading higher, China and Hong Kong slipped into negative territory. In the US, Wall Street indices ended mostly higher on Wednesday.
Back home, investor activity was evident: Foreign Institutional Investors (FIIs) sold shares worth ₹1,666.46 crore, whereas Domestic Institutional Investors (DIIs) were net buyers, pumping in ₹2,495.33 crore.
Meanwhile, energy markets saw some easing, with Brent crude slipping 0.56% to $67.22 per barrel. Analysts suggest that softer crude prices combined with the new GST framework could further reduce inflationary pressures.
