GST overhaul fuels stock markets rally; Sensex jumps nearly 900 points

Benchmark equity indices Sensex and Nifty surged in early trade on Thursday (September 4, 2025) as investors became cheerful after the GST Council approved a complete overhaul of the tangled Goods and Services Tax regime.

The 30-share BSE Sensex jumped 888.96 points to 81,456.67 in opening trade. The 50-share NSE Nifty surged 265.7 points to 24,980.75.

Also Read | Who are the members of the GST Council and what is their voting power?

Common use items from roti/paratha to hair oil, ice creams and TVs will cost less, while tax incidence on personal health and life insurance will be brought down to nil after the all-powerful GST Council on Wednesday approved a complete overhaul of the tangled Goods and Services Tax (GST) regime.

Follow the GST Council meeting LIVE

The GST Council approved limiting slabs to 5% and 18%, effective from September 22, the first day of Navaratri.

From the Sensex firms, Mahindra & Mahindra jumped the most by over 7.50%. Bajaj Finance, Hindustan Unilever, Bajaj Finserv, ITC, Tata Motors and UltraTech Cement were also among the gainers.

However, Eternal, Tata Steel, NTPC and HCL Tech were among the laggards.

“The revolutionary GST reform has come with better-than-expected benefitting a wide spectrum of sectors. The ultimate beneficiary is the Indian consumer, who will benefit from lower prices. The potential big boost to consumption in an economy that is already in growth momentum will be big and may surprise on the upside,” V.K. Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.

He further added that after the initial enthusiasm, tariff issues will continue to haunt the market.

In Asian markets, South Korea’s Kospi and Japan’s Nikkei 225 index traded in positive territory while Shanghai’s SSE Composite index and Hong Kong’s Hang Seng quoted lower.

U.S. markets ended mostly higher on Wednesday (September 3).

Foreign Institutional Investors (FIIs) offloaded equities worth ₹1,666.46 crore on Wednesday (September 3), while Domestic Institutional Investors (DIIs) bought stocks worth Rs 2,495.33 crore, according to exchange data.

Global oil benchmark Brent crude dipped 0.56% to $67.22 a barrel.

On Wednesday, the Sensex jumped 409.83 points or 0.51% to settle at 80,567.71, and the Nifty climbed 135.45 points or 0.55% to 24,715.05.