Equities, ₹ sparkle on 'double Diwali' promise; bonds flicker

"We are bringing next-generation GST reforms. This will reduce the tax burden across the country," the PM had said.

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The changes, alongside earlier income tax cuts, are pitched as a cushion against weak consumption and the bite of 50 per cent US trade tariffs. S&P Global's decision to raise India's long-term sovereign rating for the first time in 18 years (from BBB- to BBB), while simultaneously upgrading 10 financial institutions, added heft to the rally and spurred buying across banks and consumer-facing stocks.

"Domestic equities witnessed a strong rebound following the PM's announcement of second-generation GST reforms... This triggered broad-based buying. The market sentiment was further buoyed by S&P's upgrade of India's sovereign credit rating," said Siddhartha Khemka, head of research (wealth management), Motilal Oswal Financial Services.