Sensex, Nifty extend gains for fourth straight session; FIIs turn buyers, GST revamp in focus

Indian equity benchmarks extended their winning streak for the fourth consecutive session on Tuesday, supported by buying from foreign and domestic investors, a rating upgrade by S&P Global, lower crude prices and hopes of a major GST revamp.

The benchmark BSE Sensex and broader NSE Nifty rose nearly half a per cent each today, while mid- and small-cap indices also ended higher. Nifty sustained its key resistance at 24,800 and entered the 25,000 zone, aided by positive flows and strong domestic macros, said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities.

After four sessions of selling, foreign institutional investors (FIIs) turned net buyers, purchasing equities worth Rs 550.85 crore in the previous session. Domestic institutional investors (DIIs) remained strong with net inflows of Rs 4,103.81 crore.

"The market extended its upward move today, driven by lower oil, S&P rating upgrade and GST cut hopes," said Mandar Bhojane, Senior Technical & Derivative Analyst at Choice Equity Broking. He pegged Nifty support at 24,700–24,600 with an upside target between 25,000 and 25,200.

Meanwhile, the government is preparing a major overhaul of the Goods and Services Tax (GST) regime, likely to be unveiled during the 56th GST Council meeting in September or October. The revamp, if cleared by the Group of Ministers, could lower costs for several goods and services.

Adding to the positive sentiment, S&P Global Ratings upgraded India’s sovereign rating to BBB from BBB- for the first time in nearly two decades, a move seen as a significant boost to the economy.

On the commodities front, Brent crude futures slipped 63 cents to $65.97 a barrel, while US West Texas Intermediate (WTI) fell 63 cents to $62.79.