Markets opened with strong gains on Thursday morning as the sparked optimism across sectors. The 50 started at 24,980.75 from its previous close of 24,715.05 and was trading at 24,913.35, up 198.30 points or 0.80 per cent, at 9.53 a.m. The opened at 81,456.67 against its previous close of 80,567.71 and stood at 81,233.14, higher by 665.43 points or 0.83 per cent, as expectations of a consumption boost ahead of the festive season lifted sentiment.
“The GST slab and rate rationalisation as well as the process improvement is a step in the right direction. The Diwali gift of ₹48,000 crore is fiscally manageable,” said Nilesh Shah, Managing Director at Kotak Mahindra AMC. The reforms introduce a special 40 per cent rate for luxury and sin goods including high-end cars, tobacco, and cigarettes, while cutting rates on essential items like hair oil, cornflakes, TVs, and insurance premiums.
led the gainers on Nifty 50, surging 6.48 per cent to ₹3,499, followed by which jumped 4.84 per cent to ₹939.70. gained 2.80 per cent to ₹6,550, while rose 2.58 per cent to ₹2,016.90 and Nestle India climbed 2.57 per cent to ₹1,225.50.
“GST 2.0 marks a defining reset for India’s consumption story. By rationalising slabs and lowering rates on mass categories while taxing sin goods higher, the Council has unlocked volume tailwinds for staples, durables and autos,” said Trideep Bhattacharya, President and CIO-Equities at Edelweiss Mutual Fund.
The automobile sector emerged as a key beneficiary, with analysts expecting the reduced GST rates to drive vehicle sales during the upcoming festive period. FMCG stocks also gained traction, continuing their four-session rally on expectations of increased consumer demand.
“The potential big boost to consumption in an economy that is already in growth momentum will be big and may surprise on the upside. This GST reform along with the fiscal and monetary stimulus already provided can trigger a virtuous cycle and boost India’s growth to 6.5 per cent in FY26 and perhaps 7 per cent in FY27,” said Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited.
On the downside, fell 1.01 per cent to ₹1,093.30, while Eternal dropped 0.54 per cent to ₹324.35. Infosys declined 0.41 per cent to ₹1,473, IndusInd Bank lost 0.40 per cent to ₹765.05, and Tata Steel slipped 0.39 per cent to ₹167.20.
Technical analysts remain bullish on the market outlook. “Technically, the Nifty is forming a double bottom in the 24,350-24,500 range. A break above the 24,770 resistance could target 25,000, and a close above this level may trigger a significant rally,” said Santosh Meena, Head of Research at Swastika Investmart.
Foreign Institutional Investors continued their selling streak for the eighth consecutive session, offloading equities worth ₹1,666 crore on September 3. However, Domestic Institutional Investors provided support by purchasing equities worth ₹2,495 crore, marking their seventh straight session of net buying.
“The GST reforms are both bold and transformative, exceeding expectations in their scale and impact. Because indirect taxes are inherently regressive, these reductions deliver disproportionate benefits to poor and middle-class segments, enhancing affordability and strengthening consumption-led growth,” said Pranab Uniyal, Head of HDFC Tru at HDFC Securities.
The insurance sector is expected to benefit significantly from the GST cuts on health and life insurance premiums. White goods manufacturers are also likely to see increased demand as the reduced tax rates make products more affordable for consumers.
Commodity markets showed mixed trends, with crude oil futures declining on reports of potential OPEC+ production increases. November Brent oil futures fell 0.59 per cent to $67.20, while WTI crude dropped 0.64 per cent to $63.56. On MCX, September crude oil futures traded at ₹5,600, down 0.60 per cent from the previous close.
Gold and silver continued their rally, reaching historic levels in both global and domestic markets following weaker US jobs data that strengthened expectations of Federal Reserve rate cuts.
Market participants remain cautiously optimistic about sustaining the current momentum, with key resistance levels at 24,850 for Nifty and major support at 24,600. “Rationalisation of GST will partially help offset the adverse impact of US tariffs in the quarters to come,” Shah added, highlighting the reforms’ potential to cushion the economy against external headwinds.