Indian Stocks Rally as Modi’s Tax Cut Aim Lifts Consumer Stocks

Indian stocks rallied on Monday, with a gauge of consumer names having its best day in more than three months, after Prime Minister Narendra Modi announced plans to lower taxes on everyday goods in a bid to cushion the blow of potential US tariffs and boost consumption.

The NSE Nifty 50 Index closed 1% higher, while the broader measures of small and mid-sized firms also advanced. Nifty’s consumption index rallied more than 2%, its biggest surge since early May. Bonds dropped while the rupee gained against the dollar.

Markets reopened after Friday’s public holiday with renewed momentum, buoyed by the ...