Indian Equity Markets Rally on GST Reform Optimism; Auto and Consumer Durables Lead Gains

Indian benchmark indices extended their upward trajectory, with the Sensex climbing 0.91% to 81,334.17 and the Nifty 50 surging 1.09% to 24,900.75. The rally was fueled by robust performance in auto and consumer durable stocks, buoyed by proposed GST reforms aimed at simplifying tax structures and stimulating consumption.

Sectoral indices told the story: Nifty Auto and Consumer Durables jumped 3-4.5%, while banking and financial services edged up marginally. Maruti, Hero Motocorp, and Mahindra & Mahindra led the charge with 5-8% gains. The market's bullish tone found further support from S&P Global's credit rating upgrade for India, reinforcing confidence in the economic outlook.

Meanwhile, IT and pharma stocks bucked the trend, slipping into negative territory. The divergence highlights how domestic-focused sectors are benefiting from reform expectations while export-oriented industries face headwinds.