In a welcome turn for investors, the Indian stock market opened on September 4, 2025, with both the Sensex and Nifty rallying amid sweeping GST tax cuts that reignited market sentiment.
Market Highlights
- The Nifty 50 surged past 24,900, showing strong momentum.
- The Sensex rallied more than 700 points, crossing the 81,400 mark during the session.
- The rally marked one of the most energetic starts in recent weeks, giving a confidence boost to market participants.
What's Fueling the Rally?
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GST Overhaul:
A simplified two-tier GST structure was introduced, cutting tax rates on daily essentials, consumer products, automobiles, footwear, insurance, and renewable energy equipment. Higher taxes were levied on tobacco and luxury goods. -
Sectoral Gains:
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Auto stocks like Mahindra & Mahindra and Eicher Motors posted solid gains.
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FMCG majors such as Britannia, Hindustan Unilever, and Nestle rallied on expectations of stronger consumption.
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Insurance companies gained after GST on premiums was slashed.
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Surprisingly, even tobacco stocks gained despite higher tax rates, reflecting broad market optimism.
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Positive Economic Outlook:
Analysts expect the reforms to add up to 1% to overall GDP growth over the coming quarters. -
Supportive Global Trends:
A softer U.S. dollar and positive global cues further strengthened investor sentiment, adding fuel to the rally.
Summary: Why the Rally Matters
The key message is clear: GST tax cuts boost Indian stock market. The reforms provided a big relief to consumers and businesses, especially in auto and FMCG sectors. Investors are now betting on stronger demand, better earnings, and a brighter economic outlook ahead of the festive season.
Risk Disclaimer:
This article is for informational purposes only and does not constitute financial advice or an investment recommendation. Stock markets are subject to risks and fluctuations. Investors should do their own research or consult financial experts before making investment decisions.
