Sensex rises 1,000 pts, Nifty up 350 on GST reform hopes, S&P boost

Benchmark indices opened sharply higher on Monday, supported by hopes of GST reforms ahead of the festive season, with the Sensex rising over 1,000 points and the Nifty gaining around 350 points. Strong gains in auto stocks and a boost from S&P lifted market sentiment, pushing indices to fresh highs.

As of 9:24 am, the S&P BSE Sensex was up 956.81 points at 81,554.47, while the NSE Nifty50 climbed 307.10 points to 24,938.40.

Hopes of a breakthrough in the Russia–Ukraine conflict, signals from US President Donald Trump that he may reconsider secondary tariffs on India, and S&P’s upgrade of India’s sovereign rating supported investor confidence and bolstered risk appetite.

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The Sensex opened at 81,315.79, up from its previous close of 80,597.66, and surged more than 1,100 points, or 1.4 per cent, to an intraday high of 81,765.77. The Nifty 50 started the day at 24,938.20 against 24,631.30 in the last session and climbed 1.6 per cent to reach an intraday peak of 25,022. Broader indices also participated in the rally, with the BSE Midcap and Smallcap indices rising over 1 per cent each.

Top gainers and losers

Maruti Suzuki led the gains with a rise of 7.14 per cent, followed by Bajaj Finance up 4.79 per cent, UltraTech Cement higher by 3.96 per cent, Mahindra & Mahindra advancing 3.81 per cent, and Bajaj Finserv climbing 3.48 per cent. On the downside, Larsen & Toubro slipped 0.57 per cent, ITC fell 0.43 per cent, HCL Technologies declined 0.31 per cent, Sun Pharmaceutical Industries eased 0.20 per cent, while Infosys edged lower by 0.11 per cent.

The overall market capitalisation of BSE-listed companies jumped to over ₹450 lakh crore in early trade, compared with ₹445 lakh crore in the previous session, adding ₹5 lakh crore to investors’ wealth within the first five minutes. By around 10:30 am, the Sensex was up 997 points, or 1.24 per cent, at 81,595, while the Nifty 50 gained 344 points, or 1.40 per cent, to 24,976.

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Why is the Indian stock market rising? Here are key triggers driving the rally:

1. Market cheers PM Modi’s GST reform announcement

In his Independence Day address at the Red Fort, Prime Minister Narendra Modi announced a new wave of GST reforms.

“Next-generation reforms will be introduced under the GST framework. This Diwali, these GST reforms will bring a double bonus to the people, enhancing their celebrations,” the PM said.

The reforms are expected to boost consumption, with reports suggesting that most goods and services taxed at 12 per cent and 28 per cent could be shifted to the 5 per cent and 18 per cent slabs, respectively.

2. Easing geopolitical headwinds

Global sentiment has improved ahead of US President Donald Trump’s meeting with Ukrainian President Volodymyr Zelensky on Monday, following his talks with Russian President Vladimir Putin on Friday, August 15.

Although the Trump-Putin meeting concluded without a breakthrough, markets are watching the Trump-Zelensky talks for positive signals. According to Reuters, “Russia would give up small occupied areas of Ukraine, while Kyiv would hand over parts of eastern territory that Moscow has so far failed to seize under the peace plan discussed at the Alaska summit between Putin and Trump.”

3. S&P upgrades India’s rating

S&P Global on August 14 raised India’s sovereign rating to BBB from BBB–, while maintaining the economic outlook as “stable.” This is the first sovereign upgrade for India by S&P since 2007. The agency also upgraded India’s short-term rating to A-2 from A-3 and improved the transfer and convertibility assessment to A- from BBB+.