Sensex, Nifty Soar as GST Reform Cuts Tax Slabs to 5% and 18%

Mumbai: Indian stock markets surged sharply on Thursday morning, cheered by the GST Council’s decision to overhaul the tax system. The benchmark BSE Sensex climbed 888.96 points to 81,456.67, while the NSE Nifty gained 265.7 points to touch 24,980.75, signaling strong investor optimism.

The GST Council announced a simplified two-slab structure of 5% and 18%, effective September 22, coinciding with the start of Navaratri. The reform is expected to bring down the prices of several consumer items such as roti, paratha, hair oil, ice cream, and televisions, while health and life insurance services will now be completely tax-free. Analysts believe this move will boost demand and give households much-needed relief ahead of the festive season.

Top gainers in Thursday’s session included Mahindra & Mahindra, which surged more than 7.5%, along with Bajaj Finance, Hindustan Unilever, Bajaj Finserv, ITC, Tata Motors, and UltraTech Cement. On the other hand, a few heavyweights like Eternal, Tata Steel, NTPC, and HCL Tech registered declines.

Commenting on the development, VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said, “This reform was better than expected and will benefit multiple sectors. The biggest winner is the Indian consumer, who will now pay lower prices. This could drive spending and accelerate economic growth.”

Globally, Asian markets showed mixed trends — South Korea and Japan traded higher, while China and Hong Kong slipped slightly. On Wall Street, US markets ended mostly positive in Wednesday’s session.

Meanwhile, data showed that Foreign Institutional Investors (FIIs) sold shares worth ₹1,666.46 crore, whereas Domestic Institutional Investors (DIIs) made net purchases of ₹2,495.33 crore, indicating robust domestic support.

Adding to the positive market sentiment, Brent crude oil prices fell 0.56% to USD 67.22 per barrel, providing relief on the inflation front.