Indian equities are poised for a positive start on Thursday, September 5, 2025, as investor sentiment remains upbeat following the government's announcement of major indirect tax reforms and strong cues from the GIFT Nifty. Markets are also reacting positively to a sharp rally in metal stocks and optimism from Wednesday's GST Council meeting.
According to experts, the new GST regime, which will come into effect from September 22, 2025, could act as a significant trigger for consumption-driven sectors and boost earnings potential across FMCG, auto, and retail stocks.
GST Reform Boosts Sentiment: 396 Items to Get Cheaper
Finance Minister Nirmala Sitharaman confirmed that the GST Council has rationalised tax slabs, bringing them down to 5%, 18%, and 40%. The new regime will lead to a GST rate reduction on 396 items, expected to ease inflationary pressure and enhance consumption - especially in the festive season ahead.
Market analysts believe that these reforms could improve earnings visibility in the coming quarters and lead to sector-specific rallies, particularly in FMCG, auto, consumer durables, and discretionary sectors.
GIFT Nifty Surges Ahead of Market Open
The GIFT Nifty on the NSE IX traded 167 points higher at 24,979, signaling a robust start for benchmark indices. A strong rally in U.S. markets and stable Asian equities are also expected to support positive momentum on Dalal Street.
On Wednesday, the Nifty 50 had closed at 24,715.05, and a gap-up opening today could potentially push the index past the 24,800 resistance level, with analysts targeting 24,950-25,000 in the near term.