|
Getting your Trinity Audio player ready...
|
Mumbai | September 2025
India’s stock markets celebrated the government’s major overhaul of the Goods and Services Tax (GST) with a sharp gain on Thursday. The BSE Sensex climbed 152 points to close at 82,540, while the Nifty50 crossed the 24,700 mark, ending at 24,715. Investors welcomed the simplification of GST slabs to just two rates — 5% and 18% — signaling renewed confidence in India’s economic outlook.
Market Highlights
● Sensex ended 152 points higher at 82,540.
● Nifty50 gained 75 points to close at 24,715.
● FMCG, consumer durables, automotive, and banking stocks led the rally.
● Shares of heavyweights such as Hindustan Unilever, ITC, Maruti Suzuki, and HDFC Bank saw brisk buying as markets priced in benefits from reduced tax complexity.
Reasons Behind the Rally
The GST reform is expected to lower compliance costs for businesses, encourage higher consumer spending on essentials and mid-range products, and create a simpler tax environment attractive to investors. Market experts believe these changes will boost India’s growth prospects in upcoming quarters, lifting corporate earnings and investor sentiment.
Expert Insights
Ruchir Jain, a market analyst, explained, “This reform is pro-consumer and pro-business, especially benefiting sectors like FMCG and automobiles.” Economist Anjali Mehra added, “Simplification of GST is key for economic efficiency and policy stability. The market’s positive response reflects confidence in these reforms.”
Bigger Economic Picture
India’s economy has shown resilience, with GST collections averaging ₹1.8 lakh crore monthly in 2025. The new GST structure aims to broaden the tax base, improve compliance, and support GDP growth. Global investors continue to view India as a safe haven in turbulent economic times, ensuring steady foreign inflows into equity markets.
Parting Thoughts
The strong stock market rally after the GST reform announcement highlights investor optimism that the changes will ease doing business and spur consumption. For now, Dalal Street clearly welcomes the government’s move to simplify taxation and foster growth.
