Markets Open Higher on GST Reforms, Fed Rate-Cut Hopes; Nifty Crosses 24,800.
Benchmark indices opened firm on Friday, supported by GST rate rationalisation and dovish signals from the US Federal Reserve. The Sensex rose nearly 300 points in early trade, while the Nifty50 climbed past 24,800, raising hopes of further upside if clarity emerges on US tariff negotiations.
Investor sentiment has been buoyed by recent tax cuts, weaker US labour data, and Fed commentary that strengthened expectations of an interest rate cut this month. Asian markets also tracked Wall Street gains on the back of easing rate concerns.
Domestic flows remain a key support. Mutual fund buying in equities touched ₹70,500 crore in August, offsetting recent foreign investor outflows. “Sustained inflows and relative strength in largecaps point to a healthy trend despite weakness in mid and smallcaps,” said Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Analysts noted that while the market had partly priced in GST reforms, momentum remains positive. “Modest closing gains suggest the tax cuts were largely factored in, but GST’s direct benefits keep sentiment upbeat,” said Rajesh Bhosale of Angel One.
On Thursday, the Sensex and Nifty had briefly rallied over 1% intraday after the GST Council approved a two-rate structure and cut levies on essential goods, though energy stocks lagged.
Foreign portfolio investors sold shares worth ₹1.06 billion on Thursday, while domestic institutions bought ₹22.33 billion. HSBC Global Research said supportive policy measures and resilient earnings outlook could encourage foreign inflows in coming weeks.
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