Sensex, Nifty close higher amid broad-based rally; All eyes on GST reforms

The benchmark indexes closed at the day’s high on Wednesday, supported by a strong late-session rally in banking, metal and pharma stocks, buoyed by expectations of an economic boost from the upcoming GST reforms.The 56th meeting of the Goods and Services Tax (GST) Council, chaired by Union Finance Minister Nirmala Sitharaman, has begun today in New Delhi. The two-day meeting is expected to take up a major revamp of GST slabs, compliance simplification measures, and next-generation reforms.

The NSE Nifty 50 closed 135 points higher at 24,715, while the S&P BSE Sensex advanced 410 points to settle at 80,568. The Nifty Bank index climbed 407 points to 54,068, recovering from early weakness, while the broader Nifty Midcap index gained 368 points to 57,346.

“Indian equities closed higher after a mixed start to the session, buoyed by expectations of a consumption-led stimulus from the potential GST slab rationalization. All categories of consumer-based sectors, like discretionary, durable and staples, continued to outperform. Meanwhile, gold extended its rally in the global market to fresh highs, reflecting investor caution amid persistent concerns over prolonged US tariffs and their potential impact on global growth and geopolitical changes. In the near term, market sentiment hinges on the outcome of the GST Council meeting with traction on consumption-oriented stocks and sectors. Well, the expectations are very high, increasing the risk of disappointments, which can kickstart consolidation again,” Vinod Nair, Head of Research, Geojit Investments Limited, said.Metals led the rally, with the Nifty Metal index jumping 3% as Tata Steel, Hindalco and JSW Steel surged up to 6% each. Pharma stocks also participated, with Piramal Pharma and Glenmark Pharma rallying between 5% and 8%, pushing the Nifty Pharma index up 1%.

Gold financiers Muthoot Finance and Manappuram Finance gained 3-4% tracking firm gold prices. Coal India rose 2% after a healthy August production update. Among other movers, travel services platform TBO Tek jumped 15% after announcing a $125 million acquisition of Classic Vacations, while Ola Electric extended its winning streak, gaining 28% over the last three sessions.

On the downside, Phoenix Mills slipped 3%, giving up some of Tuesday’s gains, while Indus Towers closed lower but recovered from intraday losses after announcing its Africa market entry.

Market breadth was strongly positive with the advance-decline ratio at 2:1. Volatility eased, with the India VIX (volatility index) falling 4%, indicating improved investor sentiment ahead of policy developments.