By Bharath Rajeswaran
(Reuters) -India’s equity benchmarks rose on Tuesday, led by Reliance Industries and auto makers on hopes of a demand boost from proposed goods and services tax (GST) cuts.
The Nifty 50 gained 0.42% to 24,980.65, while the BSE Sensex added 0.46% to 81,644.39.
The broader small-cap and mid-cap indices advanced 0.7% and 1%, respectively. Thirteen of the 16 major sectors logged gains.
Both benchmarks had jumped about 1% on Monday after Prime Minister Modi announced sweeping changes to the GST regime, which could spur consumption and soften the impact of U.S. tariffs.
“A GST overhaul will lift incomes across the economy by lowering costs and stimulating consumption,” said Saurav Ghosh, co-founder of online investment platform Jiraaf.
“Combined with income tax reforms, this will empower Indian households to spend and save more, reinforcing domestic demand.”
Reliance Industries, the third-heaviest Nifty stock, rose 2.8% after brokerages flagged multiple growth drivers in its fiscal 2025 annual report.
Its telecom arm Jio discontinued some entry-level prepaid plans, a move seen as driving monetisation and boosting average revenue per user (ARPU). Reliance led the gains in the oil and gas index, which rose 1.7%.
Oil refiners BPCL, HPCL and IOC gained as crude prices fell on expectations that peace talks between Russia, Ukraine and the U.S. could end the war in Ukraine and ease sanctions on Russian oil. [O/R]
The auto index gained 1.3%, extending Monday’s 4.2% surge, after the government proposed cutting GST on small cars to 18% from 28%.
Textile makers including Vardhman Textiles, Raymond Lifestyle and Welspun Living rose 3.8%-10.3% after the government scrapped cotton import duties from August 19 to September 30, giving the garment industry temporary relief.
Fertiliser stocks advanced on reports that China has lifted export curbs, easing supply concerns.
(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Sherry Jacob-Phillips and Sonia Chee,a)
