By Bharath Rajeswaran
(Reuters) -India’s equity benchmarks inched higher on Tuesday as gains in Reliance Industries and optimism over proposed tax cuts helped overpower a broader pullback after a rally in the prior session.
The Nifty 50 was up 0.17% at 24,918.75 points and the BSE Sensex gained 0.23% to 81,457.13, as of 10:26 a.m. IST.
The broader small-caps and mid-caps rose 0.4% and 0.2%, respectively.
Both the benchmarks jumped about 1% on Monday after Prime Minister Modi announced sweeping changes to the goods and services tax (GST) regime, which could boost consumption and cushion the impact of U.S. tariffs.
Reliance, the third-heaviest stock on the Nifty, climbed 2.1% on Tuesday after several brokerages highlighted growth drivers in its fiscal 2025 annual report.
The oil-to-telecom conglomerate additionally announced the entry of its consumer products arm into the healthy beverages segment via a joint venture with Natureedge Beverages.
Other Asian markets were also muted ahead of the Federal Reserve’s annual gathering between August 21-23 in Jackson Hole, Wyoming. [MKTS/GLOB]
“After yesterday’s rally, Indian markets are consolidating and this could continue until Powell’s speech, with traders keenly scanning for clues on a September rate cut,” said Devarsh Vakil, head of prime research at HDFC Securities.
Most investors expect a 25-basis-point cut, but tariff concerns are keeping markets cautious, he added.
Lower U.S. interest rates make emerging markets, including India, more appealing to foreign investors.
Among other stocks, textile makers including Vardhman Textiles, Raymond Lifestyle, Indo Count and Welspun Living surged 3%-8% after the government temporarily scrapped import duties on cotton from August 19 to September 30, offering relief to the garment sector.
Vedanta gained 2% after the company said its board of directors will meet on August 21 to consider a second interim dividend on equity shares for fiscal 2026.
(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Sherry Jacob-Phillips and Sonia Chee,a)
