JP Morgan upgrades Nifty target to 30,000 following GST reforms; market rally expected from H2FY26

After the recent GST reforms announced by the government, global brokerage JP Morgan has updated its outlook on the Indian markets. The firm believes the Nifty index will likely trade in a range of 26,500 to 30,000 over the next six to nine months, with a stronger market rally expected from the second half of the financial year 2025–26 (H2FY26).

JP Morgan’s analysts say the GST changes will ease the tax burden for many sectors, boost consumer spending, and help corporate profits improve. This, combined with lower inflation and a better overall economic outlook, should give markets a solid push forward.

The brokerage highlighted sectors like consumer goods, financial services, and healthcare as key beneficiaries of these reforms.

What changed in GST?

Small cars now attract 18 per cent GST, down from 28–31 per cent, for petrol engines up to 1,200 cc and diesel up to 1,500 cc.

Large SUVs see a reduction from 43–50 per cent to 40 per cent.

Electric vehicles continue to enjoy a concessional GST rate of 5 per cent.

Two-wheelers under 350 cc now have GST at 18 per cent instead of 28 per cent; above 350 cc, the rate is 40 per cent.

Commercial vehicles GST reduced from 28 per cent to 18 per cent.

Tractors and agricultural machinery GST slashed from 12 per cent to 5 per cent, making them more affordable for farmers.

These changes are expected to make products cheaper, encouraging more buying and supporting economic growth.