Markets staged a strong comeback on Monday, with the Sensex surging 676.09 points or 0.84 per cent to close at 81,273.75 and the Nifty 50 climbing 245.65 points or 1 per cent to settle at 24,876.95, driven by optimism over proposed GST reforms and positive global developments. The key drivers behind the rally were automobile and FMCG stocks, as they are perceived to be the biggest gainers from the proposed GST reform.
The Prime Minister Narendra Modi’s announcement of “next-generation GST reforms” by Deepavali boosted market sentiment, with the proposed changes expected to reduce the tax burden on consumers and MSMEs. Notably, S&P Global Ratings upgrading of India’s sovereign outlook also triggered bullish sentiment, said analysts.
“The proposed rationalisation of GST is a sentiment booster for the domestic market. In H2FY26, we expect the consumption-led sectors to show some traction on account of demand revival,” said Vinod Nair, Head of Research at Geojit Investments.
Investor sentiment was uplifted after Prime Minister Narendra Modi announced a landmark overhaul of the Goods and Services Tax (GST) regime, the most significant reform since its rollout in 2017, said Vishnu Kant Upadhyay, AVP-Research & Advisory, Master Capital Services.
Ato stocks on fast lane
Auto stocks emerged as the biggest beneficiaries of the GST reform buzz, with the Nifty Auto index leading sectoral gains by surging 4.18 per cent. Over half-a-dozen automobile stocks, including M&M, Maruti Suzuki, Hyundai Motor, TVS Motor, Ashok Leyland and Eicher Motors, hit all-time high in today’s trade. The Nifty Consumer Durables index surged 3.30 per cent, reflecting optimism about improved consumer demand following potential tax cuts.
Maruti Suzuki topped the gainers’ list on the Nifty 50, jumping 8.92 per cent to ₹14,090 from its previous close of ₹12,936. Hero MotoCorp followed with a 5.99 per cent gain to ₹4,990 from ₹4,708.10. Other major auto gainers included Bajaj Auto, which rose 4.61 per cent to ₹8,592 from ₹8,213.50.
Similarly, broader consumption theme also gained traction, with Nestle India advancing 5.23 per cent to ₹1,146.40. Shares of Amber Enterprises India zoomed 7.93 per cent, Blue Star surged 7.35 per cent, Voltas jumped 5.78 per cent, Havells India climbed 5.12 per cent, Whirlpool of India (4.74 per cent) and Symphony (3.69 per cent) on the BSE.
The positive momentum extended to broader markets, with the Nifty Midcap 100 rising 1.08 per cent to 57,113.15, adding 608.90 points, while the Nifty Smallcap 100 gained 1.38 per cent. Market breadth remained firmly positive with 2,562 stocks advancing against 1,627 declining issues on the BSE.
Top losers
However, some blue-chip stocks faced selling pressure. ITC was the top loser on the Nifty 50, declining 1.49 per cent to ₹405.30 from ₹411.45. Other notable decliners included Tech Mahindra, which fell 1.09 per cent to ₹1,470.50 from ₹1,486.70, Larsen & Toubro down 1.01 per cent to ₹3,640 from ₹3,677, and NTPC dropping 0.90 per cent to ₹336.30 from ₹339.35.
“Markets staged a strong rally on Monday and ended with gains of over a percent. After a sharp gap-up start, the Nifty moved within a consolidation range before finally settling at 24,876.95,” said Ajit Mishra, SVP Research at Religare Broking.
Other sectors that gained included consumer durables (3.08 per cent), consumer discretionary (2.74 per cent), realty (2.19 per cent), commodities (1.96 per cent), metal (1.95 per cent) and services (1.30 per cent) while IT, Power and Technology were the laggards.
“Despite the upbeat mood, markets witnessed profit booking after the Nifty crossed the 25,000 level in intraday trade. Uncertainty stemming from the inconclusive US–Russia summit in Alaska also weighed on investor confidence, keeping global risk sentiment cautious,” said Upadhyay.
On the currency front, the rupee strengthened 0.24 paise to close at 87.31 against the dollar. “Rupee gained 0.24 paise to close at 87.31, supported by expectations of a GST reduction likely to be announced around Diwali,” said Jateen Trivedi, VP Research Analyst at LKP Securities.
In commodities, gold remained range-bound near ₹99,800. “Gold traded flat to volatile near 99800 as the U.S.–Russia meeting over the weekend did not yield any clear resolution on the Russia–Ukraine peace process,” Trivedi noted, adding that the trading range remains between ₹99,000-1,01,500.
Technical analysts remain optimistic about the near-term outlook. “For Nifty, the zone of 24,800-24,770 will act as an important support. While on the upside, the zone of 25000-25050 will act as a crucial hurdle,” Shah said, adding that any sustainable move above 25,050 could lead to a rally up to 25,200-25,350.
Looking ahead, market participants will closely watch for concrete details on the GST reforms expected around Diwali, while technical levels around 25,000 for the Nifty remain crucial for sustaining the current momentum.
Published on August 18, 2025
