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The S&P BSE Sensex rose nearly 600 points in early trade, while the NSE Nifty50 crossed 25,900, as investors cheered the reforms that collapsed the tax structure into four slabs-0%, 5%, 18% and a new 40% for luxury and sin goods. By scrapping the earlier 12% and 28% rates, GST 2.0 promises to simplify compliance and make essentials cheaper. Market participants believe this could set the stage for a consumption revival, with direct benefits for autos, fast-moving consumer goods, cement, housing and financials. Auto and FMCG shares led the rally. Maruti Suzuki, Mahindra & Mahindra, Hindustan Unilever and ITC gained sharply on expectations that lower GST on small cars, two-wheelers, packaged food and personal care products would spur demand. Real estate and financials followed suit, buoyed by hopes of stronger consumption feeding into credit growth and housing activity. Market experts see the reform as more than a rate cut. Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said, "The revolutionary GST reform has come better than expected, benefitting a wide spectrum of sectors. The ultimate beneficiary is the Indian consumer who will benefit from lower prices. The potential big boost to consumption in an economy that is already in growth momentum will be big and may surprise on the upside." He added that the changes could spark a "virtuous cycle," with cheaper goods driving demand, higher demand lifting corporate earnings, and stronger earnings attracting more investment. According to him, this could help push India's growth to 6.5% in FY26 and even 7% in FY27, with autos best placed to outperform. Kranthi Bathini, Director-Equity Strategy at WealthMills Securities, echoed the sentiment: "The GST bonanza has lifted the market sentiment, the consumer theme and also the GST bonanza has been touching almost all the sectors. So, this created euphoria and exuberance in the market, especially the consumer-centric stocks. Investors can hold on to the stock." Santosh Meena, Head of Research at Swastika Investmart, "The Indian stock market is poised to embrace the proposed GST reforms, streamlining tax slabs to 5% and 18%. This reduction, especially from the 12% and 28% brackets, is expected to spur consumer demand ahead of the festive season, benefiting sectors like consumer durables, automobiles, and FMCG. However, stocks in these sectors have already surged in anticipation." "The tax cut supports consumption-driven growth, but its success hinges on companies passing on savings to consumers. Markets will also factor in the long-term impact on government revenue and the broader economy," he added. WHAT SHOULD INVESTORS DO? Analysts broadly suggest holding positions in consumer-facing sectors that are set to benefit most from lower GST rates. Autos, FMCG and housing-related plays could see sustained demand momentum, while financials may ride on stronger credit offtake. Technical experts point out that the market trend remains positive in the near term. Anand James, Chief Market Strategist at Geojit Financial Services, highlighted that the push above 24,670 on the Nifty signals strength, with 24,809 as the immediate target and 25,100 as the next. He pegged 24,650 as the key support level to watch. Still, traders warn against ignoring global risks. External shocks, particularly tariff tensions and volatile commodity prices, could temper the rally once the initial GST excitement fades. For investors, the message is clear: consumer-linked stocks look promising, but staying disciplined and mindful of global cues will be critical.