Indian equity markets closed on a strong note on Monday, August 18, 2025, driven by heavy buying in key sectors like auto, banking, and consumer durables. The positive sentiment was fueled by upcoming Goods and Services Tax (GST) reforms announced by the Prime Minister and a favorable global environment.
Market Performance:
- Sensex: The BSE Sensex closed at 81,273.75, a gain of 676.09 points or 0.84 per cent. It opened with a sharp gap-up at 81,315.79 and touched an intraday high of 81,765.77.
- Nifty 50: The NSE Nifty 50 settled at 24,876.95, higher by 245.65 points or one per cent.
Key Drivers:
- GST Reforms: The proposed rationalization of GST, which could see a move to a two-slab system (5% and 18%) and a special 40% rate for luxury goods, was a major sentiment booster. This is expected to reduce the tax burden on everyday items and stimulate consumption. According to Vinod Nair, Head of Research at Geojit Financial Services, the automobile sector is a key beneficiary of the anticipated tax reforms, and consumption-led sectors are likely to gain momentum in the second half of FY26 with a revival in demand.
- Positive Global Cues: The recent conclusion of the US–Russia summit without an escalation in geopolitical tensions helped ease investor concerns. Additionally, a recent S&P Global credit rating upgrade for India from ‘BBB-‘ to ‘BBB’ also contributed to the positive market outlook.
- Rupee Appreciation: The rupee appreciated by 24 paise, closing at 87.31 against the US dollar. Jateen Trivedi, Vice President of Research at LKP Securities, stated that the GST reform move is a part of policymakers’ efforts to cushion the economy against lingering pressure on exports due to US tariff issues. He expects the rupee to trade in the range of 87.00 to 87.75 in the near term.
Sectoral and Stock Performance:
- Top Gaining Sectors: Nifty Auto led the rally, rising by 1,008 points or 4.18 per cent. Other sectors that performed well included Nifty Bank (+393 points, +0.71%), Nifty Financial Services (+275 points, +1.05%), and Nifty FMCG (+647 points, +1.19%).
- Laggards: Nifty IT was the only sectoral index to close in the red.
- Top Gainers (Sensex): Maruti Suzuki, Bajaj Finance, Ultratech Cement, Adani Ports, Bajaj Finserv, Mahindra & Mahindra, Hindustan Unilever, Trent, Asian Paints, Tata Steel, Tata Motors, Axis Bank, and Bharti Airtel were among the top performers.
- Top Losers (Sensex): ITC, Tech Mahindra, L&T, NTPC, and Infosys ended lower.
Broader Market Performance:
The broader markets also reflected the overall optimism, with strong gains across the board:
- Nifty Next 50: +888 points (+1.34%)
- Nifty 100: +266 points (+1.05%)
- Nifty Midcap 100: +608 points (+1.08%)
- Nifty Smallcap 100: +242 points (+1.38%)
