Sensex Soars 676 Points, Nifty Jumps 1%, GST Reform Buzz Lifts Market Sentiment

Mumbai: Indian stock markets started the week on a strong note as investors cheered the government’s big proposal to simplify the Goods and Services Tax (GST) structure before Diwali.

On Monday, the BSE Sensex surged 676.09 points (0.84 percent) to close at 81,273.75, while the NSE Nifty gained 245.65 points (1 percent) to end at 24,876.95. During intraday trade, the Sensex shot up over 1,100 points, and the Nifty briefly crossed the 25,000 mark.

GST Reform Plan Boosts Sentiment

The rally came after Prime Minister Narendra Modi, in his Independence Day speech, announced plans to reform the GST system.

According to reports, the Centre has proposed a two-tier GST structure of 5 percent and 18 percent, while also keeping a special 40 percent rate for a few luxury or sin goods. This move would remove the current 12 percent and 28 percent tax slabs.

The proposal will be reviewed by a group of state finance ministers in New Delhi on August 20–21. Market experts believe this step could ease compliance, boost consumption, and help businesses.

Auto Stocks Steal the Show

The star performers of the day were auto and consumer durable companies. Maruti Suzuki soared nearly 9 percent, making it the biggest gainer in the Sensex pack. Hyundai Motor India also rallied 8.45 percent, while other auto players like Mahindra & Mahindra and Bajaj Auto posted solid gains.

The BSE Auto index jumped 4.26 percent to 56,233.33, highlighting strong investor appetite for the sector. Consumer durable companies also witnessed heavy buying.

S&P Rating Upgrade Adds Positivity

Another factor driving optimism was global rating agency S&P’s upgrade of India’s sovereign credit rating, which lifted investor confidence about the country’s economic outlook.

However, not all stocks participated in the rally. ITC, Tech Mahindra, L&T, and Eternal ended the day in the red.

Global Market Mood Mixed

In Asia, Japan’s Nikkei 225 and China’s Shanghai Composite closed higher, while South Korea’s Kospi and Hong Kong’s Hang Seng ended lower. European markets were trading weak, and US markets had closed mostly negative on Friday.

Meanwhile, Brent crude oil prices rose 0.62% to USD 66.25 a barrel, and FIIs sold shares worth Rs 1,926 crore in the previous session.