Indian markets continued their upward trajectory on Tuesday as investors remained optimistic about the upcoming GST changes promised by Prime Minister Narendra Modi. Both benchmarks rallied throughout the session and ended trading higher.
The BSE Sensex settled just under 81,650, climbing more than 350 points, while the NSE Nifty50 teased 25k and closed the day at 24,990, jumping over 100 points.
On the 30-share Sensex, Tata Motors, Adani Ports, Reliance, Eternal, and Tech M ended trading in green. Meanwhile, Bajaj Finserv, PowerGrid, M&M, HDFC Bank, and BEL stood among the laggards.
In the broader markets, the Nifty Microcap250 jumped 1.19 per cent. Sectorally, the Oil & Gas index stood out with gains of 1.66 per cent. On the other hand, the Pharma index slipped 0.34 per cent.
Talks at the White House have raised hopes of a possible resolution to the ongoing war, which could pave the way for the removal of secondary tariffs on India—a development seen as market-friendly, according to VK Vijayakumar, Chief Investment Strategist at Geojit Investments. He, however, cautioned that it may be too early to expect concrete policy shifts from the Trump administration given the current geopolitical backdrop.
At the same time, signals of next-generation reforms in the Goods and Services Tax (GST) framework have lifted domestic investor sentiment, with policy initiatives from the government reinforcing optimism in the markets.
Notably, the Sensex climbed 676.09 points, or 0.84 per cent, to close the previous trading session at 81,273.75, while the Nifty advanced 245.65 points, or 1 per cent, to end at 24,876.95.
Nifty Likely To Reach 28k By September 2026
Indian equity markets are likely to witness strong momentum over the next year, supported by the government’s plan to rationalise the Goods and Services Tax (GST), which analysts expect will lift growth prospects and improve investor sentiment.
Brokerage house Emkay Research revised its market outlook, projecting that the Nifty 50 could climb to 28,000 by September 2026. The firm described GST rationalisation as a “growth-accretive, big-ticket reform” and a key driver for market performance.
“We see this as a major market mover and upgrade our Nifty target to 28,000 for Sep-26,” Emkay Research said in its note. The brokerage added that the reform is expected to accelerate the formalisation of the economy while enhancing the competitiveness of domestic companies.
Though the government may incur some short-term revenue losses from lower tax collections, Emkay believes the higher fiscal deficit will remain manageable. It expects the additional growth momentum to offset the shortfall within two to three years.
Terming GST rationalisation a “rerating trigger for the market,” the report highlighted that the reform could deliver long-term structural benefits for the economy. Its upgraded Nifty target is based on a forward price-to-earnings multiple of 20.7 times, which is one standard deviation above the five-year average.
