Nifty surged over 200 points today, on GST reforms

Following a gap-up opening of over 300 points on the back of GST reforms, the Nifty extended its gains to test the 25,022 level in the early morning session. While it pared some of those gains, the Nifty still settled with a strong gain of 245 points, or 1%, to close at 24,876. This marks the highest percentage gain since June 26th, 2025, a clear sign of renewed optimism.

Leading the charge among the Nifty’s top performers were Maruti, Hero MotoCorp, and Nestle, signaling a positive sentiment in the Auto and FMCG sectors. Conversely, it proved to be a tough session for heavyweights like ITC, Eternal, and Tech Mahindra, which ended as the major losers within the Nifty pack. Trading volumes in the NSE cash market were sharply higher, up by 28% today compared to last Friday, a clear indication of higher participation in the rally.

Amongst the sectoral indices, Auto, Consumer durables, Realty and Metals emerged as major gainers while Nifty IT, Media, and Pharma ended the day slightly in the red.

The Indian rupee appreciated 20 paise against the dollar to close at 87.35. This rise was primarily driven by the sharp rally in the equity markets on the back of the GST reforms reportedly recommended by Prime Minister Modi. These measures could help revive foreign portfolio flows, which have been negative of late amid concerns over higher U.S. tariffs on Indian goods.

The positive momentum extended into the broader market as well, with both the Nifty Midcap and Smallcap indices rising alongside the benchmark. The Nifty Midcap 100 Index rose by 1.08%, while the Nifty Smallcap Index outperformed by rising 1.4%. Market breadth turned decisively positive, with advancing shares comfortably outnumbering declining ones, as indicated by an advance-decline ratio on the BSE of 1.57, the highest since July 29th.

Following today’s up move Nifty reclaimed its level above the 50-day D EMA, now around 24800. By testing 25003, the Nifty has completed a 50% Fibonacci retracement of the entire fall from the recent swing high of 25669 to the recent swing low of 24337. Sustained trading above 25000 could push the index further towards the 61.8% retracement level of 25160. On the downside, the 24,750-24,820 band, where the 20 and 50-day DEMAs now coincide, stands as an immediate support zone.

Disclaimer : This content is only for informational purpose. It does not make any recommendation to act or invest.

Source: HDFC Securities Prime Research