Are Nifty and Sensex Opening Higher Due to Positive GST Reforms?

Mumbai, Aug 19 (NationPress) The Indian benchmark indices started on a positive note on Tuesday, fueled by market enthusiasm surrounding the anticipated Goods and Services Tax (GST) reforms.

During the morning session, the Sensex surged by 195.01 points, or 0.24 percent, reaching 81,468, while the Nifty 50 climbed by 46.30 points, or 0.19 percent, to 24,923.

Additionally, broader market indices experienced buying momentum, with the BSE SmallCap index advancing by 0.30 percent and the BSE MidCap index increasing by 0.11 percent.

Among the top gainers in the Nifty group were Bharti Airtel (up 1.76 percent), Hero Motocorp, and NTPC. Conversely, Shriram Finance, Bajaj Finance, Bajaj Finserv, Maruti Suzuki, and Hindalco emerged as the primary laggards.

The Nifty Auto sector dipped by 0.24 percent after a robust gain of over 4 percent the previous day, while the Nifty Oil and Gas index surged by 0.71 percent. Most indices recorded moderate gains of up to 0.60 percent.

Commenting on the situation, VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, noted, "Discussions in the White House suggest a reasonable likelihood of resolving the conflict, which could lead to the removal of secondary tariffs on Indian goods. This development appears promising from a market perspective." However, he cautioned that expecting immediate positive reactions from the Trump administration may be premature given the current geopolitical landscape.

Meanwhile, government policy initiatives regarding the GST, coupled with hints of next-generation reforms, have significantly boosted market sentiments.

Mandar Bhojane from Choice Broking remarked, "The daily chart indicates that Nifty has formed a shooting star, suggesting a possible pullback towards 24,700. However, the hourly RSI indicates bullish divergence, signaling strength and potential for upward movement. With the FII long-short ratio at a mere 8 percent, short-covering could ignite a rally."

Asian markets exhibited a mixed performance during the morning, with China's Shanghai index climbing 0.34 percent, Shenzhen index also up by 0.34 percent, and Hong Kong's Hang Seng Index (HSI) edging up by 0.02 percent. In contrast, Japan's Nikkei declined by 0.14 percent and South Korea's Kospi fell by 0.35 percent.

In the United States, the Dow Jones Industrial Average (DJIA) saw a dip of 0.08 percent, while the Nasdaq gained 0.03 percent. The S&P 500 remained nearly flat with a slight decline of 0.01 percent.

On Monday, foreign institutional investors returned as net buyers after four sessions, acquiring Indian equities worth Rs 551 crore, while domestic institutional investors (DIIs) purchased shares worth Rs 4,104 crore.