The Indian equity markets are benefiting from long-term growth tailwinds but are witnessing short-term valuation risks, a report said on Tuesday.

"The domestic stock market is entering FY26 with cyclical headwinds but strong structural drivers," Enquirus Securities said in its report.

"We are Overweight on auto, capital market, cement, FMCG, infra, internet platforms, NBFC, oil & gas sectors, while we are underweight on building materials, industrials and defence, real estate, textile, logistics sectors,” said Maulik Patel, Head of Research, Equirus Securities.

The brokerage house has kept a neutral stance on banks, chemicals, consumer durables, EMS, IT services, metals and mining, healthcare, and retail sectors.

India is expected to clock 6.7 per cent growth in the first quarter of the current fiscal (FY26), outpacing the RBI Monetary Policy Committee's (MPC's) recent forecast of 6.5 per cent, credit rating agency ICRA said on Tuesday.

The rating agency report projects the growth in the gross value added (GVA) to stand at 6.4 per cent in Q1 FY2026.

Improved transmission of monetary easing and the recent announcement of forthcoming GST rationalisation may help to shore up urban consumption sentiments ahead of the festive season, the report said.

"ICRA estimates a double-digit growth in net indirect taxes (in nominal terms), aided by the sharp uptick in the government of India's indirect taxes (+11.3 per cent in Q1 FY26 from -3.1 per cent in Q4 FY2025), despite the narrower contraction in its subsidy outgo," said Aditi Nayar, Chief Economist, Head-Research and Outreach, ICRA.

The National Highways Authority of India (NHAI) has sold over 5 lakh FASTag-based annual toll permits in just four days, collecting Rs 150 crore in revenue.

Tamil Nadu recorded the highest number of purchases of annual passes in four days, followed by Karnataka and Haryana. Further, Tamil Nadu, Karnataka, and Andhra Pradesh recorded the highest number of transactions through FASTag annual passes at toll plazas, a statement by NHAI said.

Private vehicles can now use an annual toll pass for free passage through toll plazas on national highways and expressways with each pass priced at Rs 3,000.

Cars, jeeps, and vans can use this facility at toll plazas run by the National Highways Authority of India (NHAI) and the Ministry of Road Transport and Highways.

The Indian benchmark indices on Tuesday opened on a positive note, amid market enthusiasm regarding the upcoming Goods and Services Tax (GST) reforms.

Sensex gained 195.01 points or 0.24 per cent in the morning session to touch 81,468, while Nifty 50 rose by 46.30 points or 0.19 per cent to 24,923.

Broad cap indices also saw buying activity. The BSE SmallCap index was up by 0.30 per cent and the BSE MidCap index advanced 0.11 per cent.

Top gainers in the Nifty pack were Bharti Airtel (up 1.76 per cent), Hero Motocorp and NTPC. Shriram Finance, Bajaj Finance, Bajaj Finserv, Maruti Suzuki, and Hindalco were among the top laggards.

The Securities and Exchange Board of India (SEBI) on Monday extended the deadline for the new margin pledge and re-pledge framework within the depository system to October 10.

The rules were earlier scheduled to take effect from September 1.

"Based on the same and in order to ensure smooth implementation without any disruption to the market players and investors, it has been decided to extend the timeline for implementation to October 10," SEBI said in its circular.

The regulator said the decision was taken after receiving requests from depositories CDSL and NSDL, which sought more time to complete system development and conduct end-to-end testing.

The Indian stock market ended the session in green on Monday after heavy buying in auto, banking and consumer durable stocks, amid the positive sentiment around upcoming GST reforms.

Sensex closed at 81,273.75, up 676.09 points or 0.84 per cent. The 30-share index opened the session with a huge gap-up at 81,315.79 against last session's closing of 80,597.66. Buoyed by overall buying post the GST reform announcement, the index touched an intraday high at 81,765.77.

Nifty settled at 24,876.95, up 245.65 points or 1.0 per cent.

"The proposed rationalisation of GST is a sentiment booster for the domestic market. Additionally, the recent conclusion of the US and Russia summit, without any escalation in geopolitical tensions, has helped ease investor anxiety," said Vinod Nair, Head of Research, Geojit Investments Limited.