Markets Eye Gap-Up Start as GST Reform Kicks In
- Two-tier structure to boost FMCG, auto, and insurance stocks, tobacco taxed at 40%.
- Asian and US markets rally on Fed rate cut hopes.
- BHEL, Jio Financial, Poly Medicure, and RailTel in focus with major deals and fund-raising.
Dalal Street is gearing up for a buoyant session on Thursday as the much-awaited Goods and Services Tax (GST) rationalisation is expected to drive market sentiment. Early indicators pointed to a strong opening, with GIFT Nifty up 148 points at 24,961 as of 7:50 AM, signaling a gap-up start for benchmark indices.
On Wednesday, the GST Council, chaired by Union Finance Minister Nirmala Sitharaman, reached a breakthrough by adopting a simplified two-tier tax structure. The changes will take effect from September 22, coinciding with the first day of Navratri, sparking optimism across key sectors.
Under the revised framework, tax levies on household consumption items, handicrafts, and agriculture-related goods will no longer attract the 5 percent tax. A steep 40 percent rate has been imposed on all tobacco-related products, potentially impacting companies like ITC. At the same time, individual life and health insurance policies will now be fully exempt from GST, providing relief to policyholders and insurers alike.
Global Cues Supportive
Sentiment across Asian equities was upbeat in early trade on Thursday. The MSCI AC Asia Pacific index gained 0.46 percent, driven by strength in Japan’s Nikkei and Australia’s S&P ASX 200. The rally followed overnight gains on Wall Street, where weaker U.S. economic data reinforced expectations of a Federal Reserve rate cut in September. Job openings in the U.S. fell to a 10-month low, boosting rate-cut bets and sending the S&P 500 up 0.51 percent and the tech-heavy Nasdaq higher by 1.02 percent.
Back home, the positive undertone was already visible on Wednesday, with the Sensex climbing 409.83 points, or 0.51 percent, to settle at 80,567.71. The Nifty50 also added 135.45 points, or 0.55 percent, closing at 24,715.05. Analysts expect the new GST framework to trigger sectoral momentum, especially in FMCG, textiles, insurance, and auto, while tobacco counters may remain under pressure.
Key Stocks to Watch Today
Bharat Heavy Electricals (BHEL): BHEL has received a Letter of Intent (LoI) from MB Power (Madhya Pradesh) Limited for the supply of Boiler, Turbine, and Generator equipment for the 1x800 MW Anuppur Thermal Power Project. The project is valued at about Rs 2,600 crore, excluding GST, and could bolster BHEL’s order book.
Can Fin Homes: The housing finance firm announced that its Board has approved the issuance of Non-Convertible Debentures (NCDs) worth up to Rs 10,000 crore. The issuance falls within the limit cleared by shareholders at the company’s 38th Annual General Meeting, aimed at funding growth initiatives.
Force Motors: The automaker reported domestic sales of 2,295 units in August 2025, marking a 6.6 percent year-on-year growth. However, exports fell sharply by 26 percent to 108 units. Total sales stood at 2,403 units, reflecting a modest 4.5 percent overall increase.
Jio Financial Services: The company has allotted 50 crore warrants at Rs 316.50 each to promoter group members, raising Rs 3,956.25 crore in cash. The fresh capital infusion strengthens Jio Financial’s balance sheet as it continues expanding its lending and digital financial services portfolio.
Poly Medicure: The medical devices manufacturer announced plans to acquire a 90 percent stake in Netherlands-based PendraCare Group, including PendraCare Holdings and Wellinq Medical, from Wellinq Holdings B.V. The transaction is valued at €18.3 million, expanding Poly Medicure’s footprint in Europe.
Prestige Estates: Subsidiary Prestige Office Ventures has come under regulatory scrutiny, receiving a show cause notice from the Directorate General of GST Intelligence, Hyderabad. The notice falls under provisions of the Central, Telangana, and Integrated GST Acts, 2017.
RailTel Corporation: The state-run telecom services provider bagged a work order worth Rs 14.95 crore, excluding tax, from the Ministry of Home Affairs. The project involves supplying, installing, testing, and commissioning IP-based CCTV surveillance systems at the ministry.
Sammaan Capital: The company approved raising up to Rs 10,000 crore through various debt instruments. In addition, it cleared issuance of secured/unsecured redeemable non-convertible debentures or bonds worth up to Rs 30,000 crore via private placement.
Sharika Enterprises: The firm secured its second order from JSW Steel for 220kV Extra High Voltage cable installation at the Dolvi Plant in Maharashtra. The deal follows a successful 4 km installation project completed earlier.
GHV Infra Projects: The company received a LoI from GHV (India) Private Limited for engineering and construction work on the integrated redevelopment of a South Eastern Railway station in Jharkhand. The contract is valued at Rs 120 crore and is expected to be completed in three years.
Outlook
With the GST revamp acting as a major trigger and global cues supportive, Indian equities are poised for an eventful session. While sectors such as FMCG, insurance, and auto could ride the positive wave, tobacco counters like ITC may face headwinds. Investors will also keep an eye on stock-specific developments as companies roll out expansion, fund-raising, and acquisition plans.
