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

10-yr bond yield sees sharpest rise in nearly two yrs as GST rejig plan stokes fiscal fears

- SUNDAR SETHURAMAN & ANJALI KUMARI

Investor sentiment received a strong lift on Monday as Prime Minister Narendra Modi's promise of sweeping reforms to goods and services tax (GST), combined with the country's first sovereign credit upgrade in nearly two decades, sent equities higher and strengthened the rupee. Bond markets, however, turned skittish and the yield on the benchmark 10-year government security jumped 10 basis points - the steepest single-day rise since October 2023-as the expected reduction in GST rate slabs revived fiscal concerns, and stoked fears of increased debt supply.

The Sensex surged 1,168 points at one stage before closing 676 points, or 0.8 per cent, higher at 81,274. The Nifty 50 added 246 points, or 1 per cent, to settle at 24,877.

Both indices recorded their best single-session performance since June 26 on a closing basis, and the sharpest intraday rise since May 15. The market capitalisation of BSE-listed firms rose by 6 trillion to a record 451 trillion.