Indian equity benchmarks closed on a strong note Monday, lifted by optimism around the proposed goods and services tax (GST) restructuring and the recent sovereign ratings upgrade for the country. Temporary relief measures on Russian oil imports also supported the mood.
The Nifty 50 advanced 245.65 points, or 1%, to end at 24,876.95, marking its best single-day gain since May 23. The Sensex rose 0.83% to settle at 81,273.75.
Buying was seen across consumption-driven sectors. Nifty Auto surged 4.18%, while Nifty Consumer Durables and Nifty Realty gained 3.38% and 2.17%, respectively.
The government’s proposal to reduce GST slabs from four to two is being viewed as a key reform aimed at boosting domestic consumption. Sectors such as automobiles, consumer durables, insurance, and cement are expected to be among the major beneficiaries. However, uncertainty around the timing of implementation has left some caution in the market, especially ahead of upcoming festivals.
Prime Minister Narendra Modi, in his Independence Day address on August 15, announced that the new GST structure is expected to be rolled out by Diwali, with an aim to lower taxes on essential goods as a “gift” to the people.
Adding to the positive triggers, S&P Global Ratings upgraded India’s sovereign rating on August 14 — the country’s first such upgrade since 2007.
On the broader market front, the Nifty Midcap index rose 1.9% to 21,267.05, while the Nifty Smallcap index climbed 1.33% to 16,878.7.
Despite the strong domestic momentum, foreign institutional investors continued to remain cautious, pulling out significant amounts in July and August. Global developments, including trade policy uncertainties, also weighed on sentiment.
Technical charts suggest that 24,800–24,770 will act as a key support range for Nifty 50, while 25,000–25,050 remains the immediate resistance. A breakout above these levels could trigger further upside momentum.
Disclaimer: This article is for informational purposes only and should not be considered investment advice. Please consult your financial advisor before making any investment decisions.
