Stock markets rose sharply on Monday, with Sensex closing higher by 676 points and Nifty closing 1% higher for the first time in two months, buoyed by the GST reforms announcement by Prime Minister Narendra Modi.
Accordingly, Nifty stocks of consumer facing sectors such as automobile, consumer durables and FMCG rallied.
Nifty Auto rose 4.18%, closing at 25,127.20 points, Nifty Consumer durables rallied 3.4% to 38,590.60 points, and Nifty Realty rose 2.18% to close at 898.45 points.
Besides the response to the GST announcement, a combination of other positive news on the global and domestic economy led to the rally that broke two months of a tepid market.
On the domestic front, an eight-year low inflation and S&P’s credit rating upgrade to BBB for the first time in 18 years, fueled the rally. Despite nine consecutive quarters of tepid earnings, analysts said both consumer durables and staples earnings reported “better than expected revenue prints and management commentary.”
They added that a potential tariff relief from the U.S. and cheaper crude oil helped keep the Nifty afloat.
“A combination of policy reforms (GST 2.0), sovereign rating upgrade, potential tariff relief, RBI and government stimulus, monsoon-led consumption revival and festive demand could trigger a strong recovery in the corporate earnings in the second half of FY26. Thus, we maintain a positive view on Indian equities over the next 6-9 months,” Siddhartha Khemka, Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd. said in a research note.
Published – August 18, 2025 09:08 pm IST
