Indian Equities Rally on GST Reform Hopes; Cryptocurrency Market Watch

Indian markets opened sharply higher on Monday, with the Sensex surging 1,080 points (1.34%) to 81,678 and Nifty gaining 360 points (1.46%) to 24,991. The rally was led by automobile stocks following Prime Minister Narendra Modi's announcement of impending GST reforms. Hero MotoCorp (+8.11%), Maruti Suzuki (+7.32%), and Bajaj Finance (+5.79%) were among the top performers.

While traditional markets celebrate potential tax rationalization, cryptocurrency traders await similar regulatory clarity. The GST announcement's focus on simplifying tax slabs (potentially to 5% and 18%) raises questions about whether India's crypto tax regime might see comparable reforms. Current cryptocurrency transactions face 1% TDS and 30% capital gains tax—a structure many industry participants consider prohibitive.

Market analysts suggest the equity rally reflects broader Optimism about business-friendly reforms. 'Declarations by the prime minister on the next major reforms in GST by Diwali are a big positive,' said Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services. This sentiment could spill over into digital assets if policymakers extend their reform agenda to blockchain technologies.