GST boost for markets: Sensex jumps 600 pts, Nifty above 24,900; FMCG, auto shares rally

Sensex jumps 600 pts, Nifty above 24,900 as GST rate cuts spark market rally

India’s equity markets surged at the open on Thursday, buoyed by sweeping Goods and Services Tax (GST) rate rationalisation announced a day earlier. The benchmark Sensex jumped over 600 points at the opening bell, while Nifty crossed the 24,900-mark.

By 9.20 a.m., the Sensex was trading 0.7 percent higher at 81,100—up 610 points—while the Nifty gained 0.7 percent to 24,910.

Mahindra & Mahindra led the rally, soaring over 7 percent, followed by Hindustan Unilever, Maruti Suzuki India and ITC Ltd, which advanced more than 4 percent, 3 percent and 2.5 percent respectively. NTPC and Reliance Industries slipped marginally.

Sectorally, the Nifty Auto index outperformed with a 2.4 percent rise, trailed by Nifty FMCG, which gained 2.1 percent. Nifty Realty and Consumer Durables added 1 percent each, while Nifty Pharma, PSU Bank and Private Bank indices edged up 0.5 percent apiece.

“The GST reforms represent a paradigm shift towards economic rationality,” said Devarsh Vakil, Head of Prime Research at HDFC Securities. “Rate cuts on essentials like dairy, medicines and food will directly benefit consumers. A simplified two-slab structure reduces compliance burdens and prioritises core growth drivers. Coupled with RBI rate cuts, FY26 income tax rebates and moderating inflation, the reforms provide multiple levers for consumption and expansion, reflecting a decisive push for inclusive taxation and improved ease of doing business.”

The government’s revamped GST structure trims rates across auto, FMCG and consumer durables, merging slabs into 5 percent and 18 percent, while maintaining a 40 percent rate for luxury goods. The withdrawal of the compensation cess is expected to make vehicles more affordable.

Experts said tax relief on essentials, durables and insurance would spur demand, ease compliance and support growth as the festive season approaches.

On the technical front, analysts flagged immediate Nifty support at Rs 24,500 and Rs 24,442, with resistance at Rs 24,850 and Rs 25,000. Sustaining above Rs 24,630 may open the way for an up-move towards Rs 24,850–25,000, while dips could find support at Rs 24,500–24,442.

Bank Nifty support lies at Rs 53,500–53,250, with resistance at Rs 54,250–54,500. A sustained trade above Rs 53,750 may fuel a rally, whereas a breach could invite weakness towards Rs 53,500–53,250.