Market Wrap: Sensex settles 370 points higher, Nifty nears 25,000 on GST reform hopes; Reliance, Airtel drive gains

Sensex and Nifty extended their rally Tuesday, lifted by heavyweights Reliance Industries and Bharti Airtel, as optimism over potential goods-and-services tax (GST) reforms and tentative signs of progress in Russia-Ukraine peace talks buoyed sentiment.

The S&P BSE Sensex climbed 370.64 points, or 0.46%, to close at 81,644.39, while the NSE Nifty 50 added 103.70 points, or 0.42%, to finish at 24,980.65, just shy of the 25,000 mark. Both benchmarks had gained around 1% in the previous session.

Top Stock Movers

On the 30-stock Sensex, shares of Tata Motors, Adani Ports, Reliance Industries Ltd, Eternal and Tech Mahindra lead the gains, advancing between 1.8% and 3.5%.

On a sectoral basis, auto stocks advanced 1.3%, building on Monday’s 4.2% surge after the government proposed lowering the goods-and-services tax on small cars to 18% from 28%. Oil and gas shares also climbed, adding 1.7%.

Reliance Industries, the third-biggest weight on the Nifty 50, jumped 2.8% after brokerages highlighted multiple growth drivers in its fiscal 2025 annual report. Its telecom unit, Jio, scrapped certain entry-level prepaid plans in a bid to boost monetisation and raise average revenue per user.

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Textile makers including Vardhman Textiles, Raymond Lifestyle and Welspun Living rallied between 3.8% and 10.3% after the government removed cotton import duties from August 19 to September 30, offering short-term relief to the garment industry.The broader market joined the rally, with the small-cap index up 0.7% and the mid-cap index rising 1%.

Expert Views

The national market continued the renewed momentum, buoyed by expectations of GST rationalisation and a recent upgrade in India’s credit rating, said Vinod Nair, Head of Research at Geojit Investments, adding that additional optimism came from signs of easing geopolitical tensions between Russia and Ukraine, “shifting the near-term outlook from consolidation to a more constructive stance. “However, the uptrend may face resistance until greater clarity emerges on US-India trade negotiations. Notably, small- and mid-cap stocks outperformed, with auto stocks leading gains, driven by hopes that China may address supply concerns related to rare earth magnets,” said Nair.

Global Markets

Asian shares were subdued Tuesday as investors awaited policy cues from the Federal Reserve’s annual Jackson Hole gathering, while European equities edged higher ahead of central bankers’ meetings and amid tentative signs of progress in Russia-Ukraine diplomacy.

The pan-European STOXX 600 rose 0.1%, with London’s FTSE 100 flat, France’s CAC 40 up 0.2% and Germany’s DAX higher by 0.1%.

In Asia, MSCI’s broad index of Asia-Pacific shares outside Japan slipped 0.2%. Japan’s Nikkei hit a fresh intraday record before reversing to close down 0.4%, weighed by a 4% drop in SoftBank after it disclosed a $2 billion investment in struggling U.S. chipmaker Intel.

In commodities, spot gold added 0.3% to $3,339.54 an ounce.

Among cryptocurrencies, bitcoin fell 1.4% to $114,814.91, while ether declined 2.7% to $4,224.07.

Crude Impact

Oil prices slipped Tuesday as investors weighed the prospect that negotiations involving Russia, Ukraine and the U.S. could pave the way for easing sanctions on Russian crude, potentially adding supply to global markets.

Brent crude futures dropped 48 cents, or 0.7%, to $66.12 a barrel by 0820 GMT. U.S. West Texas Intermediate for September delivery, which expires Wednesday, declined 40 cents, or 0.6%, to $63.02.

Rupee vs Dollar

The Indian rupee strengthened 0.5% against the U.S. dollar to 86.95 on Tuesday, supported by optimism over the government’s proposed tax cuts and easing concerns about potential new U.S. tariffs on Indian goods.

The dollar index, which measures the greenback against a basket of major peers, was little changed after rising 0.2% in the previous session.

(With inputs from agencies)

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