Indian stock markets opened higher this week, buoyed by a combination of domestic tax reforms and easing global oil prices. The benchmark indices Nifty 50 and Sensex posted gains of over 1.5% following the announcement of GST slab restructuring and simplification. Investor sentiment has turned bullish, with foreign institutional investors resuming inflows.
The rupee also appreciated slightly against the U.S. dollar, signaling broader market confidence. Analysts believe that the elimination of the 28% GST slab and rationalization of other rates have significantly improved the economic outlook. Sectoral indices showed widespread positivity, with FMCG, real estate, and auto stocks leading the rally. “Reforms like this restore investor faith and simplify the tax terrain,” noted Sunil Khanna, an equity strategist at Axis Capital.
Global factors also played a role. Brent crude prices fell to $78 per barrel, offering relief to India’s import-heavy energy bill. As a result, inflation expectations have moderated, further improving the near-term economic climate. The confluence of domestic policy and favorable international cues has set a strong foundation for market momentum in the coming quarters.
By Neha Gupta, Markets Editor, Industrial Front