Benchmark stock market indices jumped on Thursday, boosted by the announcement on the goods and services taxes (GST) made by Finance Minister Nirmala Sitharaman late on September 3.
The S&P BSE Sensex rallied 527.86 points to 81,095.39, while the NSE Nifty50 gained 135.65 points to 24,850.70 as of 9:20 am.
Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said that the revolutionary GST reform has come better than expected benefitting a wide spectrum of sectors.
“The ultimate beneficiary is the Indian consumer who will benefit from lower prices. The potential big boost to consumption in an economy that is already in growth momentum will be big and may surprise on the upside,” he added.
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% in FY 26 and perhaps 7% in FY 27 with impressive gains in corporate earnings. The market will start discounting this likely emerging scenario. Stocks in sectors as varied as automobiles, FMCG, white goods, cement, insurance etc will be the focus of attention of the bulls. Autos are likely to outperform. There is a high probability of short covering today pushing prices higher than expectations. However, after the initial enthusiasm, tariff issues will continue to haunt the market.