Benchmark indices Sensex and Nifty surged in early trade on Monday (August 18, 2025), buoyed by plans for big bang reforms in the GST regime by Diwali and S&P upgrading India’s sovereign credit rating.

Auto, consumer discretionary and consumer durables stocks propelled the rally in the equity market.

The 30-share BSE Sensex jumped 1,021.93 points to 81,619.59 in early trade. The 50-share NSE Nifty surged 322.2 points to 24,953.50.

From the Sensex firms, Maruti, Bajaj Finance, Mahindra & Mahindra, UltraTech Cement, Trent and Bajaj Finserv were among the major gainers.

However, Larsen and Toubro, ITC, HCL Technologies and Infosys were the laggards.

“There are strong tailwinds for the market with potential to take it higher. Declarations by the prime minister on the next major reforms in GST by Diwali are a big positive. S&P upgrading India’s sovereign credit rating is another major positive,” VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.

Prime Minister Narendra Modi on Sunday (August 17, 2025) said the Centre has circulated the draft of the next-generation GST reforms among states and sought their cooperation to implement the proposal before Diwali.

Mr. Modi had announced the proposal to reform the GST law in his Independence Day speech on August 15 from the ramparts of the Red Fort.

“The expectation is that most of the goods and services will be in the 5 per cent and 18 per cent tax slabs. Sectors like autos and cement, which are presently in the 28 per cent tax slabs, are expected to benefit. TVS Motors, Hero, Eicher, M&M and Maruti are likely to respond positively to the news. Insurance companies are also expected to benefit from the GST revision,” Vijayakumar added.

In Asian markets, Japan’s Nikkei 225 index, Shanghai’s SSE Composite index and Hong Kong’s Hang Seng traded in positive territory while South Korea’s Kospi quoted lower.

The U.S. markets ended mostly lower on Friday.

Global oil benchmark Brent crude dipped 0.05% to $65.82 a barrel.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,926.76 crore on Thursday, according to exchange data.

On Thursday, the Sensex climbed 57.75 points or 0.07% to settle at 80,597.66. The Nifty rose by 11.95 points or 0.05% to 24,631.30.

Equity markets were closed on Friday for Independence Day.

Benchmark indices Sensex and Nifty were trading in positive territory in early trade on Tuesday (August 12, 2025) helped by buying in IT stocks and a firm trend in Asian markets.

The 30-share BSE Sensex climbed 66.28 points to 80,670.36 in early trade. The 50-share NSE Nifty went up by 42.85 points to 24,627.90.

Later, the BSE benchmark quoted 205.95 points higher at 80,807.55, and the Nifty traded 59 points up at 24,643.20.

From the Sensex firms, Tech Mahindra, Tata Consultancy Services, Mahindra & Mahindra, HCL Tech, Larsen & Toubro and Tata Steel were among the major gainers.

However, Eternal, Bharat Electronics, Bajaj Finance and ICICI Bank were among the laggards.

In Asian markets, South Korea’s Kospi, Japan’s Nikkei 225 index, Shanghai’s SSE Composite index and Hong Kong’s Hang Seng were trading in positive territory.

The U.S. markets ended lower on Monday.

“Nifty bulls regained some momentum in Monday’s trade, ending 222 points higher at 24,585, while Bank Nifty closed at 55,511. The market now eyes the key 25,000 level amid expected volatility ahead of U.S. and India CPI data due Tuesday, and the Trump-Putin Summit on Friday. Sentiment is buoyed by record mutual fund inflows in July, with SIP contributions at Rs 28,464 crore and total AUM crossing ₹75.36 lakh crore,” Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said.

Equity-oriented mutual funds garnered a net inflow of ₹42,702 crore in July, making it the highest-ever monthly tally for the segment, propelled by contributions from thematic and flexi-cap funds, despite heightened market volatility plagued by tariff war with the U.S.

Additionally, a healthy growth was witnessed in SIP (Systematic Investment Plan) inflow at ₹28,464 crore during the month under review, an increase from ₹27,269 crore in June, data released by the Association of Mutual Funds in India (Amfi) showed on Monday.

Global oil benchmark Brent crude climbed 0.33% to $66.85 a barrel.

Foreign Institutional Investors (FIIs) offloaded equities worth ₹1,202.65 crore on Monday (August 11, 2025), according to exchange data.

On Monday (August 11, 2025), the Sensex jumped 746.29 points or 0.93 per cent to settle at 80,604.08. The Nifty climbed 221.75 points or 0.91% to 24,585.05.