Sensex, Nifty Rally on GST Reform Announcement

The Indian stock market witnessed a sharp surge on Monday as Sensex jumped over 1,000 points and Nifty reclaimed the 25,000 mark. The rally came after Prime Minister Narendra Modi announced a next-generation GST reform plan during his Independence Day speech, sparking optimism around festive demand and fiscal year 2027 earnings outlook.

By 10 am, the Sensex surged 1,082.98 points or 1.34% to 81,680.63, while the Nifty advanced 370.90 points or 1.51% to 25,002.20, reclaiming the psychological 25,000 level.

Key Drivers of the Market Rally

The sharp upmove was supported by strong buying in auto, consumer discretionary, and cement stocks. Market sentiment also received a boost from S&P Global Ratings upgrading India’s sovereign credit rating, further fueling investor confidence.

Major Gainers:

• Maruti Suzuki

• Bajaj Finance

• Mahindra & Mahindra

• UltraTech Cement

• Trent

• Bajaj Finserv

These stocks were among the top performers, leading the market rally.

Also Read: PM Modi’s I-Day Address: Focus on National Security and Economic Growth

Sector-Wise Performance

Out of 16 major sectors, 15 ended in the green, highlighting broad-based buying across the market.

• Auto stocks jumped 3.4%

• Consumer discretionary stocks rose 1.8%

• Small-cap and mid-cap indices gained around 1% each

This broad rally indicates strong investor confidence ahead of the upcoming festive season.

Market Sentiment Ahead

The announcement of GST reforms by Diwali has raised expectations of a demand boost in the festive quarter. Investors believe that lower tax rates and simplified structures could improve consumption, benefiting sectors like autos, consumer goods, and cement.

With strong global cues, a sovereign rating upgrade, and positive domestic policy momentum, market experts expect the rally to sustain in the short term.

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