FX.co ★ India Stocks Extend Gains on GST Rate Cuts

The BSE Sensex rose by 390 points, or 0.5%, reaching 80,958 during Thursday's morning trading session, building on its previous gains. This upward movement followed the GST Council's approval of a significant revamp of the Goods and Services Tax (GST) system. The updated rate structure, which is slated to be implemented on September 22, is designed to stimulate consumption and mitigate the consequences of the newly enforced 50% US tariffs. This new GST framework introduces a simplified two-tier system with rates of 5% and 18%, thereby removing the previously existing 12% and 28% rates. Market optimism was further bolstered by comments from several Federal Reserve officials, who indicated support for possible rate cuts in the upcoming months. Concurrently, the Nifty 50 advanced by 0.5%, surpassing the 24,800 mark, with mid-cap and small-cap stocks each experiencing a 0.2% increase. Various sectors showed positive performance, notably in auto, consumer goods, and financial services. The major contributors to these gains included Mahindra & Mahindra with a surge of 6.5%, Bajaj Finance at 4.7%, Bajaj Finserv at 2.7%, Nestlé India at 2.6%, and ITC at 1.6%.