Stock Market Today: Nifty, Sensex Extend Gains for Second Day—What's Behind The Momentum?

Indian equity benchmarks continued their upward momentum for the second straight session on Tuesday, with the Nifty 50 rising 0.50% to 24,747.55 and the BSE Sensex climbing 0.48% to 80,748.94 in intraday trade. Sectoral indices added to the bullish sentiment, with Nifty Realty, Media, Oil & Gas, and PSU Bank spiking during Tuesday's trading session.

On Monday, the BSE Sensex gained over 500 points to hover near 80,350, while the NSE Nifty 50 again surpassed the 24,500 mark, supported by strong buying in heavyweights

The rally came on the heels of strong macroeconomic indicators, including India’s Q1 GDP growth of 7.8%, the highest in five quarters, and a record-high HSBC Manufacturing PMI of 59.3 in August, the best reading since February 2008.

Post the GDP number, Macquarie said that with the strong print for first-quarter GDP, it is possible for India to meet the Reserve Bank of India's GDP estimate of 6.5% for the ongoing financial year.

Adding to the market cheer, gold prices surged to a record Rs 1,05,140 per 10 gm, driven by global trade tensions and a weakening rupee. The metal has gained over 36% year-to-date, outperforming equities and attracting investor interest amid global uncertainty.

Another positive for the market was Nifty breaching the crucial 24,700 resistance level, signaling continued bullish momentum.  

The GST Council meeting is also on the cards, which could possibly boost investors' sentiment. The council is set to deliberate on Sept. 3–4 in New Delhi, regarding the proposal to slash tax rates across consumer categories.

The Centre’s push for a simplified two-rate GST structure, 5% and 18%, is expected to dominate the 56th GST Council meeting this week. If approved, the overhaul will phase out the 12% and 28% slabs, making daily-use items significantly cheaper and offering a major boost to companies in the FMCG and footwear sectors, said Goldman Sachs