Despite a volatile trading week, Indian benchmark indices Nifty and Sensex posted modest gains of around 0.85%, buoyed by optimism surrounding GST rationalisation and supportive global cues.
Auto and Metal sectors led the rally, with GST on vehicles slashed from 28% to 18%, boosting stocks like Mahindra & Mahindra and Eicher Motors, which hit record highs.
Mid- and small-cap stocks saw increased investor interest, while IT stocks declined over 2.5% due to concerns over discretionary spending and potential U.S. tariffs.
Broader sentiment was lifted by hopes of a U.S. Fed rate cut, strong macroeconomic data, and expectations of increased domestic consumption.
However, profit booking in FMCG and Realty sectors and foreign outflows weighed on the rupee, which hit a record low.
Analysts expect mixed sentiment ahead, with GST relief and festive demand supporting growth, while global uncertainties continue to temper risk appetite.
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