Mumbai: Indian stock markets saw a strong surge on Thursday morning following the GST Council’s announcement of a major overhaul to the Goods and Services Tax (GST) system. The 30-share BSE Sensex jumped by 888.96 points to reach 81,456.67, while the 50-share NSE Nifty gained 265.7 points, closing at 24,980.75.

The GST Council has simplified the tax structure by reducing the number of slabs to just 5 percent and 18 percent, effective from September 22, coinciding with the start of Navaratri. This move is expected to reduce prices for several everyday items, providing relief to consumers nationwide. Items like roti, paratha, hair oil, ice cream, and even televisions will now cost less, while personal health and life insurance have been completely exempted from GST.

Among the top-performing companies on the Sensex were Mahindra & Mahindra, which surged over 7.5 percent, followed by Bajaj Finance, Hindustan Unilever, Bajaj Finserv, ITC, Tata Motors, and UltraTech Cement. Conversely, companies such as Eternal, Tata Steel, NTPC, and HCL Tech witnessed minor losses.

Experts believe the reform will stimulate consumption. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, stated that the GST overhaul exceeded expectations and would benefit multiple sectors. “The biggest winner is the Indian consumer, who will now pay lower prices. This could push up spending and support further economic growth,” he said.

Globally, Asian markets in South Korea and Japan traded higher, while China and Hong Kong were slightly down. In the US, markets closed mostly higher on Wednesday. On the investment front, Foreign Institutional Investors (FIIs) sold shares worth Rs 1,666.46 crore, while Domestic Institutional Investors (DIIs) purchased shares worth Rs 2,495.33 crore. Brent crude oil prices also fell by 0.56 percent, settling at USD 67.22 per barrel.