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Key Points

The Indian stock market experienced a significant boost on Monday following anticipated GST reforms. Sensex surged 676 points, closing at 81,273.75, with the auto and banking sectors leading the rally. Experts believe the tax reforms could positively impact consumption-driven sectors in the upcoming financial year. The market's positive sentiment was further supported by eased geopolitical tensions between the US and Russia.

Key Points: GST Reforms Boost Sensex Maruti Suzuki Gains

  • Sensex closes at 81,273.75 with strong 0.84% gain
  • Nifty Auto leads sectoral rally with 4.18% surge
  • Maruti Suzuki and Bajaj Finance among top performers
  • GST reforms expected to drive consumption sectors
2 min read

GST reforms booster: Sensex surges 676 points, Nifty gains 245 points

Indian stock market surges 676 points on positive GST reforms sentiment, auto and banking stocks lead rally

"The proposed rationalisation of GST is a sentiment booster for the domestic market - Vinod Nair, Geojit Investments"

Mumbai, Aug 18

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.

The automobile sector outperformed, emerging as a key beneficiary of the anticipated tax reforms. In H2 FY26, we expect the consumption-led sectors to show some traction on account of demand revival, he added.

Maruti Suzuki, Bajaj Finance, Ultratech Cement, Adani Ports, Bajaj Finserv, Mahindra and Mahindra, Hindustan Unilever, Trent, Asian Paint, Tata Steel, Tata Motors, Axis Bank and Bharti Airtel were among the top gainers from the Sensex basket., while ITC, Eternal, Tech Mahindra, L&T, NTPC, and Infosys were the top losers.

Nifty Auto led the sectoral rally, surging 1,008 points or 4.18 per cent as the majority of sectoral indices settled the session with a decent gain. Nifty Bank surged 393 points or 0.71 per cent, Nifty Fin Services rose 275 points or 1.05 per cent, and Nifty FMCG ended the session 647 points or 1.19 per cent high. Nifty IT settled in negative territory.

Broader indices followed suit as well. Nifty Next 50 rallied 888 points or 1.34 per cent, Nifty 100 soared 266 points or 1.05 per cent, Nifty Midcap 100 jumped 608 points or 1.08 per cent, and Nifty Small Cap 100 closed 242 points or 1.38 per cent higher.

Meanwhile, rupee gained 0.24 paise to close at 87.31.

"The GST reform move comes as policymakers look to cushion the economy amid lingering pressure on exports from US tariff issues. Rupee range can be seen between 87.00- 87.75," said Jateen Trivedi of LKP Securities.

- IANS

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Reader Comments

S
Shreya B
As a small investor, I'm happy but cautiously optimistic. The market reacts positively now, but will these reforms actually benefit common people? Prices of daily goods need to come down too.
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Aman W
Great to see Indian markets responding well! But why is IT sector lagging? As a tech professional, I'm concerned about this trend. We need balanced growth across all sectors.
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Priyanka N
The rupee gaining is the best part! With fuel prices linked to dollar, this should provide some relief at petrol pumps. Govt should use this opportunity to cut fuel taxes.
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Karthik V
While markets are celebrating, let's not forget the compliance burden GST still puts on small businesses. The reforms should address this aspect too. #EaseOfBusiness
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Nisha Z
Maruti and Bajaj stocks soaring makes sense - middle class is buying more vehicles post-pandemic. But will this translate to better roads and infrastructure? That's the real question!
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David E
Interesting to see how India's domestic consumption story is playing out despite global headwinds. The FMCG sector growth is particularly noteworthy. Might consider increasing my India exposure.

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