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Indian stock benchmarks had a bumper opening bell Thursday, expectedly so, pushed by massive next-generation GST reforms brought in overnight, sparking investors' interest in the markets. As the day progressed, the indices, however, slid down and closed the day somehow marginally higher than the previous session close.
Sensex and Nifty closed in a range of 0.1-0.2 per cent higher. The latest positive momentum in the markets raised hopes for a strong rally. Ajit Mishra - SVP, Research, Religare Broking Ltd, said, "Markets witnessed a volatile session and ended marginally higher, supported by sweeping GST reforms that signalled a structural tax overhaul. The Nifty opened on a strong note, led by sharp gains in auto and consumer staples, but profit-taking and weakness in select heavyweights dragged the index lower as the day progressed." Sector-wise, auto, financials, and FMCG led the advance, while IT, energy, and realty were the notable laggards. "The GST 2.0 reforms strengthen the case for a consumption-led recovery, with auto and consumer staples expected to benefit the most. Select metals and infrastructure names linked to rural stimulus also remain in focus," Mishra said. The broader outlook stays vulnerable to global macro uncertainties, continued FII outflows, and persistent US tariff headwinds, he further noted. "Despite the strong start, the market struggled to maintain momentum. As the session progressed, markets failed to hold on to higher levels and came under pressure due to profit booking, erasing a large part of the early gains," Sudeep Shah, Head - Technical Research and Derivatives at SBI Securities, said. The GST Council, on Wednesday, after a threadbare discussion, approved significant rate cuts across multiple sectors, which the government has described as a Diwali gift for the nation. On the essential items front, several items of daily household use will now cost less. The 56th GST council meeting decided to rationalise GST rates to two slabs of 5 per cent and 18 per cent, while doing away with the 12 per cent and 28 per cent rates. (ANI)
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