Indian Benchmark Indices Inch Higher Ahead of Tax Council Meet

Indian shares opened slightly higher on Tuesday, extending gains from the previous session as investors awaited the outcome of the upcoming Goods and Services Tax (GST) council meeting later this week.

The NSE Nifty 50 rose 0.16 per cent to 24,668.30, while the S&P BSE Sensex gained 0.20 per cent to 80,530.12 as of 9:15 a.m. IST. On Monday, the benchmark index had climbed 0.8 per cent, led by automakers after reporting strong monthly sales. Sentiment also received support from better-than-expected GDP data and expectations of potential tax relief.

The GST council meeting, scheduled for September 3-4, is expected to discuss consumption tax reductions by at least 10 percentage points on nearly 175 products. The list includes everyday essentials such as shampoos, hybrid cars, and consumer electronics. Any tax cut announcement could benefit both Large-Cap companies and Small-Cap firms in the consumer and automobile sectors.

At the opening bell, all 16 major sectors traded higher, though the gains remained marginal. Broader market indices showed more strength, with the CNX Smallcap rising 0.5 per cent and the CNX Midcap up 0.4 per cent. The retail investors continue to focus on Mid-Cap and small-cap stocks, which have been key contributors to market momentum.

Disclaimer: The article is for informational purposes only and not investment advice.