Benchmark stock market indices in India started Tuesday's trading session on a positive note, driven by a combination of optimism surrounding potential reforms to the Goods and Services Tax (GST) and encouraging geopolitical signals.
As of 9:21 am, the S&P BSE Sensex had risen by 150.78 points to reach 81,424.53, while the NSE Nifty50 gained 38.15 points, trading at 24,915.10. The majority of the broader market indices also showed gains in early trading, reflecting an improvement in investor confidence.
According to market experts, the positive opening was a result of two main factors: a renewed hope for a resolution to the ongoing Russia-Ukraine conflict and domestic policy initiatives pointing toward a new generation of GST reforms.
Dr VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, commented on the geopolitical situation, stating, "The White House talks indicate that there is a reasonable chance of ending the war. If this happens, the secondary tariff on India for buying oil from Russia would become irrelevant. This may turn out to be a positive from the market perspective."
However, Dr Vijayakumar also issued a note of caution, advising against expecting immediate policy changes from the Trump administration. He noted, "It would be premature to expect positive responses from the Trump administration since India-US relations are strained, and India has been making tactical moves to strengthen ties with China while maintaining strong relations with Russia."
On the domestic front, he highlighted the significant impact of recent policy announcements. "Indications of next-generation GST reforms have improved market sentiment significantly," he said. He added that while sentiment has improved, tangible changes in market fundamentals like earnings growth will take time to materialise. "A sustained rally in the market will happen only when we have indications of earnings revival," he concluded.
Also Read: FM to present GST rate cut proposal on Aug 20
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