GST 2.0 Sparks D-Street Rally: Nifty50, BSE Sensex Jump 1% as FMCG, Auto Stocks Lead the Charge

Dalal Street kicked off Thursday’s trade on a jubilant note as markets cheered the government’s sweeping GST 2.0 reforms. Both Nifty and Sensex opened nearly 1% higher, driven by strong buying in FMCG and auto counters after household essentials and vehicles turned cheaper under the new tax regime. A cooling India VIX further lifted investor sentiment, signalling renewed confidence on the Street.
 

Opening Bell 
Supported by positive global cues, the Nifty hovered around the 24,900 mark at open. At the opening bell, the Sensex climbed 585.37 points, or 0.73%, to 81,153.08, while the Nifty rose 170.85 points, or 0.69%, to 24,885.90. Market breadth remained strong, with 1,926 shares advancing, 439 declining, and 126 unchanged.

Among the top gainers on the Nifty were Bajaj Finance, Hindustan Unilever, Grasim Industries, Bajaj Finserv, and Trent. On the losing side, NTPC, Reliance Industries, Hindalco Industries, HCL Technologies, and ONGC came under pressure in early trade.

Key levels to watch for: Nifty, Sensex, and Bank Nifty Levels
Sudeep Shah, VP & Head of Technical and Derivatives Research at SBI Securities, highlighted key technical levels ahead of Thursday’s session:
Nifty 50: The zone of 24,950-24,980 will act as a crucial hurdle. A sustained move above 24,980 may push the index to 25,100. On the downside, 24,700-24,670 will act as immediate support.
Bank Nifty: The index has been consolidating in a 600-point range around its 200-day EMA, a key support zone. The 54,600-54,700 range will act as resistance, with a breakout opening the path to 55,200. On the downside, 54,000-53,900 remains strong support.Sensex: The benchmark closed above 80,500 with a bullish candle on Wednesday. Going ahead, 80,500-80,400 is immediate support, while the 20-day EMA zone of 81,100-81,200 will act as resistance.
 

Ajay Bagga, market veteran siad, “The strong macro support of a multi-quarter high GDP, strong PMI readings meets the income tax cuts meets strong government expenditure meets strong rural demand backed by a robust monsoon meets underperforming markets with low expectations meets, on top of all of these tailwinds, a most timely GST cut that will boost consumption, formalisation and unleash festive cheer. Indian markets are well positioned for a pre-Diwali rally and we may take out the September 2024 all-time highs on the back of all these positive triggers. If Trump drops the punitive 25% tariffs in addition, we may be setting up for a very remarkable Santa Claus rally for the Indian markets.”

Pre-Diwali Rally on the Cards
With a confluence of GST 2.0 reforms, festive demand tailwinds, robust PMI numbers, government spending, and rural strength, analysts say Indian equities are poised for a strong run-up into Diwali.