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Reliance is leading the rise in India's benchmark stock prices ahead of the tax council meeting

India's equity benchmarks rose Tuesday in a rally that was led by Reliance Industries. Investors were also looking ahead to the GST Council meeting this week.

As of 10:17 a.m. IST, the NSE Nifty rose 0.41% and the BSE Sensex grew 0.41%.

The gains are on top of Monday's gains, when benchmark indexes rose 0.8%. Sentiment was buoyed by the better-than expected GDP data, and expectations for GST rate reductions.

The GST council is scheduled to meet September 3-4 and plans to reduce consumption tax on at least 175 products, ranging from consumer electronics to hybrid cars, by 10 percentage points.

All 16 major sectors saw gains. Small-caps and midcaps both rose by 0.7%.

Reliance Industries gained 2.2% after Morgan Stanley increased its price target. The company said that it stands to benefit the most from China’s drive to curb overcapacity and price wars within energy and solar supply chain.

Reliance led the Energy and Oil and Gas indexes by about 1.2%.

Siddhartha Khemme, Motilal Oswal Financial Services' head of wealth management research, said that the domestic macro-background and demand environment are still positive, but tariffs of 50% could limit gains.

He added that "despite the tariff worries, markets are resilient due to expectations of a U.S. interest rate cut in September and optimism about GST reforms."

Sugar stocks like Balrampur Chini and Triveni Engineering as well as Shree Renuka, Dalmia Bharat Sugar and Dalmia Bharat Sugar have risen between 4% to 13% since the government permitted unrestricted production of ethanol from sugarcane products from 2025/26.

Phoenix Mills rose 4% following Motilal's upgrade of the stock from "buy" to "buy", citing new mall launches as growth prospects.

Puravankara's unit gained 3% following a 309 million rupee ($309m) order to redevelop a housing society.

(source: Reuters)