Markets Rally Ahead of GST Council Meeting; Reliance, Sugar Stocks Shine
India’s benchmark equity indices extended gains on Tuesday, buoyed by optimism over upcoming Goods and Services Tax (GST) reforms and festive demand prospects. The NSE Nifty 50 rose 0.41% to 24,726.35, while the BSE Sensex gained 0.41% to 80,691.20 as of 10:17 a.m. IST. The rally comes on the back of Monday’s 0.8% advance, driven by stronger-than-expected GDP data and expectations of GST rate cuts.
Investor focus is on the GST Council meeting scheduled for September 3-4, where a 10 percentage point tax reduction on nearly 175 products, including shampoos, hybrid cars and consumer electronics, is expected. All 16 major sectors traded higher, with small-cap and mid-cap indices rising 0.7% each. Analysts said optimism over U.S. rate cuts, a resilient domestic demand backdrop and festive season momentum are keeping markets strong despite global tariff concerns.
Reliance Industries led the rally, climbing 2.2% after Morgan Stanley raised its price target, boosting energy and oil & gas indices by about 1.2%. Sugar stocks surged up to 13% after the government approved unrestricted ethanol production from sugarcane byproducts from 2025/26. Realty counters also gained, with Phoenix Mills jumping 4% after a broker upgrade and Puravankara rising 3% on securing a ₹27 billion redevelopment project.
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