Mumbai: Indian stock markets opened the week on a strong note, with benchmark indices Sensex and Nifty rallying more than 1 percent on Monday. The sharp rise was supported by Prime Minister Narendra Modi’s announcement of GST reforms, S&P Global’s rating upgrade for India, and firm global cues.
At around 10 am, the Sensex surged 1,082 points (1.34%) to 81,680.63, while the Nifty jumped 370 points (1.51%) to reclaim the 25,000 mark at 25,002.20.
Strong buying interest was seen in auto, consumer discretionary, and cement stocks. Major gainers included Maruti, Bajaj Finance, Mahindra & Mahindra, UltraTech Cement, Trent, and Bajaj Finserv. Out of 16 key sectors, 15 traded in green, with autos up 3.4 percent and consumer stocks gaining 1.8 percent. Midcaps and smallcaps also added about 1 percent each.
GST reforms ahead of Diwali
In his Independence Day speech, Prime Minister Modi announced plans for next-generation GST changes before Diwali. A draft has already been circulated to states. Experts believe most goods and services may move to the 5 percent and 18 percent slabs, benefiting sectors like autos, cement, and insurance that currently face higher taxes.
S&P rating upgrade supports market
S&P Global Ratings upgraded India’s sovereign rating from ‘BBB-’ to ‘BBB’, the first such move since 2007. The agency highlighted India’s strong growth, fiscal discipline, and policy stability as key reasons. Analysts said this upgrade, along with GST reforms, sent a strong positive signal to investors.
Global cues remain supportive
Asian markets, including Nikkei, Shanghai Composite, and Hang Seng, traded higher, while Wall Street futures also hinted at a firm opening.
Crude prices and rupee movement
Brent crude prices eased slightly to USD 65.82 per barrel, reducing inflation worries and supporting investor sentiment. The rupee gained 20 paise to 87.39 against the US dollar, boosted by strong equity inflows.
Relief from US tariff concerns
Market mood also improved after US President Donald Trump signalled no new tariffs on countries importing Russian crude, easing concerns of a potential impact on India’s energy trade.
The combination of domestic policy push, global upgrades, and easing crude prices created a strong foundation for the markets. Experts say continued momentum may keep Nifty above the 25,000 level in the near term.
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Source: Moneycontrol
News Desk
