CHENNAI: Indian stock markets edged higher on Tuesday (September 2), with the Sensex gaining around 350 points and the Nifty crossing above 24,700. Investor sentiment improved ahead of the GST Council meeting, where tax cuts on several consumer goods are expected, and Reliance Industries led the gains after a global brokerage raised its price target. Positive GDP data and hopes of stronger festive demand also supported the rally.
At 11.56 AM, the Sensex settled at 80674, up 310 points, and Nifty50 touched 24,729.
All major sectors traded in the green, with energy and oil & gas stocks showing strength, while mid- and small-cap indices also advanced. A big highlight of the session was the sharp rise in sugar stocks. Shares of Balrampur Chini, Shree Renuka Sugars, Dhampur Sugar Mills, Rajshree Sugars, and others jumped by 14 to 20 percent. The rally came after the Supreme Court dismissed a case against the rollout of 20 percent ethanol-blended petrol and the government removed limits on ethanol production from sugarcane juice, syrup, and different types of molasses for the next supply year. These moves are expected to boost ethanol demand and improve prospects for sugar companies.
Market experts noted that volatility eased further as the India VIX index fell by 4 percent, showing more stable trading conditions. Overall, strong policy support, expectations of tax reforms, and improving economic data helped sustain the market’s positive momentum, while sugar-ethanol policy changes turned sugar stocks into the day’s top performers.