Sensex, Nifty Extend Gains On Economic Optimism

(RTTNews) - Indian shares rose modestly on Tuesday, extending gains from the previous session amid hopes that Prime Minister Modi's recent GST reforms will potentially ease inflation and pave the way for further rate cuts by the Reserve Bank of India (RBI).

After the income tax relief announced in Budget 2025, the long-awaited GST reforms are expected to further lift the disposable incomes of consumers and boost corporate earnings growth.

Investor sentiment was also underpinned by renewed diplomatic efforts aimed at ending the war in Ukraine and improving Sino-India relations amidst global uncertainty.

China has lifted export restrictions on fertilizers, rare earth minerals and magnets, and tunnel boring machines to India -- a step that marks fresh momentum in trade ties between the two neighbors.

The benchmark BSE Sensex rose 370.64 points, or 0.46 percent, to 81,644.39 while the broader NSE Nifty index closed up 103.70 points, or 0.42 percent, at 24,980.65.

The mid-cap and small-cap indexes on the BSE both added around 1 percent.

The market breadth was strong on the BSE, with 2,636 shares rising while 1,423 shares declined and 173 shares closed unchanged.

Among the top gainers, Tata Motor and Adani Ports both jumped over 3 percent.

Reliance Industries rallied 2.8 percent after its FMCG subsidiary forayed into the healthy functional beverage space through the acquisition of a majority stake in a joint venture with Naturedge Beverages.

Kotak Mahindra Bank, Tech Mahindra ad Eternal all rose around 2 percent.

Vedanta gained 2.8 percent ahead of a board meeting to consider a second interim dividend for the financial year 2025-26.