The Nifty 50 surged 1.55% in early trade on August 18 to hit the psychological 25,000 mark, closing in at 25,012.85, powered by broad-based buying across key sectors. Gains were led by consumer durables, cement, autos, and real estate, as investors cheered the government’s move towards next-generation GST reforms.
The government’s proposal to scrap the 12% and 28% slabs and shift to a simpler two-rate system of 5% and 18% has triggered a wave of optimism in equity markets. Prime Minister Narendra Modi has described the changes as a “Diwali gift,” assuring that GST rationalisation will ease household budgets and boost demand across the consumption-driven economy.
Brokerages remain upbeat on the structural impact. Motilal Oswal expects retail prices of goods in the 12% slab to drop 4–5%, benefiting consumption themes across staples, autos, cement, and durables. Emkay Global flagged short-term fiscal costs but sees inflation easing by 50–60 basis points, while Antique Stock Broking noted the twin boost of festive season demand and tax cuts could drive a recovery in H2 FY26.
With sectors like consumer durables (Voltas, Whirlpool, Blue Star, Dixon), cement (Ambuja, Ultratech, Dalmia Bharat), and real estate (DLF, Godrej Properties, Oberoi Realty, Prestige Estates) rallying on GST hopes, investors are betting that the reforms will provide fresh momentum to India’s consumption and growth outlook.
