(Reuters) -India’s equity benchmarks jumped more than 1% on Monday, lifted by automakers and consumer firms, after New Delhi proposed tax reforms on goods and services, while financials also surged after S&P upgraded several key constituents.
The Nifty 50 rose 1.25% to 24,938.45 points and the BSE Sensex gained 1.17% to 81,541.2, as of 9:24 a.m. IST.
Fifteen of the 16 major sectors advanced, with autos and consumer stocks jumping 3.4% and 1.8%, respectively. The broader small-caps and mid-caps rose about 1% each.
Maruti Suzuki gained 6.2%, while Hero MotoCorp surged 7.5% after Reuters reported that New Delhi proposed lowering goods and services taxes on small cars to 18% from 28%, as part of its sweeping tax reforms.
The lower rates should boost overall festive demand and fiscal year 2027 earnings outlook and is a positive for Indian markets, said Citi Research.
Heavyweight financials gained 1.6%, helped by S&P ratings upgrade on stocks including HDFC Bank and SBI.
($1 = 87.4970 Indian rupees)
(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Sumana Nandy and Sonia Cheema)
