Stock Market Today | Sensex, Nifty Rebound as States Welcome GST Reforms
On Thursday, September 4, 2025, the Indian stock market experienced a significant rally, with the BSE Sensex and NSE Nifty 50 indices both opening in the green. This surge followed the announcement of major Goods and Services Tax (GST) reforms by the government, which are expected to stimulate consumption and boost economic growth. The Sensex gained over 500 points, reaching 81,135.26, while the Nifty50 rose to 24,886.50, marking a 0.69% increase for both indices.
Market Overview
The market reacted positively following the government’s move to streamline the GST framework. The GST Council decided to move from a four-slab system to two slabs, lowering taxes on many essential goods and services. This change is likely to make products more affordable for consumers and boost demand in multiple sectors. Investors welcomed these changes, leading to a surge in market indices.
GST Reform Impact
The GST reforms announced on September 4, 2025, are expected to greatly influence the Indian economy. By reducing tax rates on essential items, the government aims to increase disposable income for consumers, thereby boosting demand. The rise in consumer spending is anticipated to fuel economic growth and enhance profits for companies in multiple sectors.
Sectoral Analysis
The sectors most likely to benefit from the GST reforms include:
- Automobiles: Lower vehicle taxes are likely to boost sales for companies such as Maruti Suzuki and Mahindra & Mahindra.
- FMCG: Lower taxes on daily-use items will benefit companies such as Hindustan Unilever and Nestlé.
- Consumer Durables: Reduced taxes on items like air conditioners and televisions are expected to boost sales for companies like Blue Star and Voltas.
- Insurance: The removal of GST on individual life and health insurance policies is anticipated to increase demand in the insurance sector.
These sectoral gains are reflected in the market’s overall performance, with indices reaching new highs.
Key Stocks Driving the Rally
Several stocks drove the market rally on September 4, 2025:
- Mahindra & Mahindra: Shares jumped 7.8% to ₹3,539.25, boosted by GST cuts on SUVs and tractors.
- Bajaj Finance: Stock rose 5.8% to ₹948.20, fueled by higher consumer demand after GST reductions on durable items.
- Nestlé India: Shares gained 1.3% to ₹1,210.50, reflecting GST benefits on packaged foods and high trading volumes.
These stocks significantly lifted the Sensex, showing investor confidence in the GST reforms.
Expert Commentary and Market Sentiment
Experts view the GST reforms as a catalyst for economic growth. Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, stated, “The revolutionary GST reform has come better than expected, benefiting a wide spectrum of sectors. The primary winner is the Indian consumer, who will enjoy reduced prices.
Investor sentiment remains bullish, with expectations of sustained market gains in the short to medium term.
Global Market Influence
Global markets have shown positive trends, influenced by factors such as favorable economic data and investor sentiment. These global cues have contributed to the optimistic outlook in the Indian stock market.
Conclusion
The GST reforms announced on September 4, 2025, have had a profound impact on the Indian stock market. By simplifying the tax structure and reducing rates on essential items, the government aims to stimulate consumption and drive economic growth. The market’s positive response reflects investor confidence in these measures. As the reforms take effect, it is expected that various sectors will experience growth, contributing to the overall economic development of the country.
Disclaimer:
This content is for informational purposes only and is not financial advice. Always conduct your research.
