The NSE Nifty 50 ended 246 points, or 1%, higher at 24,877 after briefly crossing the 25,000 mark for the first time, while the BSE Sensex gained 676 points to settle at 81,274. The Nifty Bank added 393 points to close at 55,735, while the Nifty Midcap index advanced 609 points to 57,113. Market breadth was firmly positive, with two stocks advancing for every one that declined.
Optimism around Prime Minister Narendra Modi’s proposed “Next Generation GST Reforms” drove sentiment, particularly expectations of a simplified tax structure and potential cuts on items such as automobiles, consumer appliances and daily essentials.
Automobile shares led the charge, with Eicher Motors, Mahindra & Mahindra, Bajaj Auto, Hero MotoCorp and Maruti Suzuki surging between 3% and 9%. Brokerage upgrades on Ashok Leyland following a healthy June-quarter performance added fuel to the sector, pushing its stock up 8%.
FMCG counters also saw strong traction, with Hindustan Unilever, Trent and Nestle climbing on hopes of a demand revival once tax cuts are implemented. Consumer durables, including refrigerators and air-conditioners, rallied up to 8% on expectations of lower GST slabs.
Cement names advanced 3-6%, while steelmakers gained after the Directorate General of Trade Remedies (DGTR) recommended safeguard duty on certain steel products for three years, sending the Nifty Metal index 2% higher. PVC pipe makers Astral and Supreme Industries added 2-3% after DGTR suggested anti-dumping duties on PVC resin imports.
Among laggards, IT stocks slipped nearly 1% as defensives underperformed in a risk-on session. Oil marketing companies also retreated 1-2% amid concerns that petroleum products may continue to remain outside the GST ambit. Glenmark Pharma dropped more than 3% after disappointing quarterly earnings.
Telecom operator Vodafone Idea jumped 6% despite posting a weak set of results, with traders betting on tariff hikes and ongoing fundraising.
