Mumbai, September 4: Equity markets surged on Thursday after the GST Council approved a sweeping overhaul of India’s indirect tax regime, sparking optimism among investors. The 30-share BSE Sensex soared 888.96 points in early trade to 81,456.67, while the NSE Nifty climbed 265.7 points to 24,980.75.
The sharp rally came a day after the GST Council decided to simplify the tax structure by limiting slabs to 5 and 18 percent, effective September 22, the first day of Navaratri. The move is set to make a range of consumer goods — from roti and parathas to hair oil, ice creams and televisions — cheaper, while health and life insurance premiums will now be exempt from GST.
Mahindra & Mahindra led the rally on the Sensex, rising more than 7.5 percent. Gains were also seen in Bajaj Finance, Hindustan Unilever, Bajaj Finserv, ITC, Tata Motors and UltraTech Cement.
Not all stocks participated in the upswing. Shares of Eternals, Tata Steel, NTPC and HCL Tech traded in the red, limiting broader gains.
Market analysts said the reforms are being viewed as a consumption booster. “This is a sentiment-driven rally, as tax cuts on essential goods and exemption for insurance are expected to spur demand across sectors,” a dealer with a domestic brokerage said.
The new GST regime is being billed as the most significant tax simplification since the system’s rollout, and investors appeared to welcome the clarity and relief it provides to both industry and households.
