The Indian stock market closed on a positive note on Monday, August 18, with both benchmark indices notching strong gains, supported by domestic and global factors that lifted investor sentiment.
The Sensex jumped more than 1,100 points during the session but pared some gains to settle 676 points, or 0.84 per cent, higher at 81,273.75. The Nifty 50 advanced 246 points, or 1 per cent, to close at 24,876.95. The BSE Midcap index rose 1 per cent, while the Smallcap index gained 1.39 per cent.
Prime Minister Narendra Modi’s announcement on the rationalisation of GST was a key trigger for the market rally. Optimism over possible relief on the US tariff front, S&P Global’s upgrade of India’s credit rating, and expectations of progress on peace talks in the Russia-Ukraine conflict further buoyed sentiment.
Investors collectively added nearly ₹6 lakh crore in a day as the market capitalisation of companies listed on the BSE climbed to ₹451 lakh crore, compared with ₹445 lakh crore in the previous session.
Stocks such as Maruti Suzuki India, Bajaj Finance, HDFC Bank, and Mahindra and Mahindra were among the major contributors to the rally. Auto stocks led the uptrend, emerging as the biggest beneficiaries of the proposed GST reforms.
“The proposed rationalisation of GST is a sentiment booster for the domestic market. Additionally, the recent conclusion of the US and Russia summit, without any escalation in geopolitical tensions, has helped ease investor anxiety.
The automobile sector outperformed, emerging as a key beneficiary of the anticipated tax reforms,” said Vinod Nair, Head of Research at Geojit Investments.
As many as 38 stocks in the Nifty index ended higher. Maruti Suzuki India rose 8.92 per cent, Hero MotoCorp gained 6 per cent, and Nestle India advanced 5.23 per cent, making them the top performers of the day.
On the downside, ITC fell 1.49 per cent, Eternal declined 1.35 per cent, and Tech Mahindra slipped 1.09 per cent.
Among sectoral indices, Nifty Auto surged 4.18 per cent, while Consumer Durables gained 3.38 per cent, Realty 2.17 per cent, and Metal 1.86 per cent. Nifty Bank rose 0.71 per cent, and Financial Services advanced 1.05 per cent.
In contrast, Nifty IT fell 0.57 per cent, while Media, Healthcare, and Pharma indices also ended marginally lower.
Vodafone Idea was the most active stock on the NSE with 67.05 crore shares traded, followed by Suzlon at 17.52 crore shares and Ola Electric Mobility at 9.5 crore shares.
On the BSE, 15 stocks surged more than 15 per cent, including Laxmi Organic Industries, Davin Sons Retail, Southern Petrochemicals Industries Corporation, Pennar Industries, IFB Industries, and Cargosol Logistics.
Out of 4,365 stocks traded on the BSE, 2,562 advanced, 1,627 declined, and 176 remained unchanged. As many as 156 stocks, including Maruti Suzuki India, Mahindra & Mahindra, Eicher Motors, TVS Motor Company, InterGlobe Aviation, Eternal, and UltraTech Cement, touched 52-week highs in intraday trade.
At the same time, 116 stocks, such as Cohance Lifesciences, Donear Industries, Dolfin Rubbers, and Agarwal Industrial Corporation, hit 52-week lows.
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