Dalal street on Fire: Nifty, Sensex surge over 1% as GST cuts spark pre-Diwali rally - World News Network

Mumbai (Maharashtra) [India], September 4 (ANI): The rally returned to Indian equity markets on Thursday as the government’s move to rationalize Goods and Services Tax (GST) rates boosted investor sentiment.
The positive momentum raised hopes for a strong pre-Diwali rally, with major indices opening sharply higher.
The Nifty 50 index opened at 24,980.75, gaining 265.70 points or 1.08 per cent, marking a strong surge in the benchmark. The BSE Sensex also jumped 882 points to open at 81,450.55, registering a gain of more than 1 per cent.
Experts said the present conditions are favourable for a bull run, and any further reduction in tariffs could help markets scale new all-time highs soon.
Banking and market expert Ajay Bagga told ANI that Indian markets are well positioned for a pre-Diwali rally.
“We may take out the September 2024 all-time highs on the back of these positive triggers. The strong macro support of a multi-quarter high GDP, strong PMI readings, income tax cuts, government expenditure, rural demand backed by a robust monsoon, and underperforming markets with low expectations–all meet at the same time. On top of all of this, the GST cut will boost consumption, formalisation and unleash festive cheer. If Trump drops the punitive 25 per cent tariffs in addition, we may be setting up for a very remarkable Santa Claus rally for the Indian markets,” Bagga said.
On Wednesday, India’s Composite PMI rose to a 17-year high of 63.2 in August, reflecting strong output growth across both manufacturing and services sectors.
Broader market indices on the NSE also reflected the positive mood. The Nifty 100 gained more than 1 per cent, the Nifty Midcap 100 surged by over 1.09 per cent, and the Nifty Smallcap index rallied more than 1 per cent.
Among sectoral indices, Nifty Auto stocks jumped more than 3 per cent as GST on cars below 1200 cc was reduced from 28 per cent to 18 per cent.
The FMCG index climbed 2.66 per cent after GST was slashed to nil on several essential food items. Realty stocks also gained over 1 per cent, with all major sectors trading in the green.
Nilesh Shah, Managing Director of Kotak Mahindra AMC, said the rationalisation of GST slabs and rates was a step in the right direction. “The Diwali gift of Rs 48,000 crore is fiscally manageable. Completing two days GST Council meeting in one day shows urgency. While leakages and fraud in GST must be dealt with firmly, process improvement should remain continuous. This step lowers inflation, increases growth, boosts consumer sentiment, does not disturb fiscal consolidation, improves ease of doing business, and partially offsets adverse effects of tariffs,” Shah said.
In other Asian markets, most indices were also trading higher. Japan’s Nikkei 225 gained 1.32 per cent, Singapore’s Straits Times was up 0.18 per cent, Taiwan’s Weighted index rose 0.70 per cent, and South Korea’s KOSPI advanced 0.37 per cent. However, Hong Kong’s Hang Seng index was down by more than 1 per cent at the time of filing this report. (ANI)

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