Indian Markets Surge After GST Cuts and Sovereign Rating Boost

Indian stock markets experienced a robust rally on Monday, buoyed by positive investor sentiment following the government's GST cuts and an upgraded sovereign rating from S&P Global. The Nifty 50 index started strong at 24,938.20, rising by 306.90 points, while the BSE Sensex climbed 727.24 points to 81,324.90.

Market analysts cited Prime Minister Narendra Modi's announcement of GST rate cuts as a key confidence booster, particularly impacting the consumption sector. In a statement to ANI, banking and market expert Ajay Bagga highlighted the dual positives for India: GST reductions over the next 50 days and the favorable sovereign rating upgrade. However, Bagga noted the importance of the upcoming US-EU-Ukraine meeting and the potential geopolitical ramifications.

Further geopolitical developments are closely watched, especially after the inconclusive Alaska Summit between Presidents Trump and Putin. While secondary tariffs on Russian dealings have been paused, additional tariffs on Indian exports to the US are pending. Analysts speculate that easing tensions with Russia could positively influence the market scenario.

Expected beneficiaries of the GST cuts include sectors such as consumption, financials, autos, and consumer durables. As broader indices like the Nifty 100, Midcap 100, and Smallcap 100 showed gains, sectoral performances were also strong. Experts are monitoring technical resistance levels and geopolitical influences that could affect market trends.

Elsewhere in Asia, Japan, Hong Kong, and Taiwan markets saw gains, while South Korea's KOSPI experienced a significant dip. Investors remain attentive to global market cues in the wake of the GST cuts and sovereign upgrade.

(With inputs from agencies.)