Stock Market Today: Nifty50 Crosses 24,950 as Sensex Rallies Over 1,000 Points on GST Reforms Push

August 18, 2025 MTIMES 34 Views GST reforms push, Indian Stock Market News, Nifty50 crosses 24950, S&P rating upgrade, Sensex jumps 1000 points, Stock market today 4 min read

Stock Market Today: Indian equity markets witnessed a strong start on Monday, with the Nifty50 surpassing the 24,950 mark and the BSE Sensex soaring by more than 1,000 points. The impressive performance comes on the back of Prime Minister Narendra Modi’s Independence Day speech in which he outlined a series of next-generation GST reforms, and S&P Global’s sovereign rating upgrade for India.

At 9:35 AM, the Nifty50 traded at 24,988.85, rising by 358 points or 1.45%, while the Sensex was at 81,678.77, up 1,081 points or 1.34%.

In terms of sectoral performance, Hero Motocorp, Maruti Suzuki, Bajaj Finance, Bajaj Auto, and M&M emerged as the top Nifty50 gainers. On the flip side, HCL Tech, ITC, L&T, Sun Pharma, and Dr Reddy’s were among the early laggards.

Market analysts observed that the Prime Minister’s announcement regarding potential GST rate cuts significantly boosted investor confidence across sectors linked to consumption. The auto, financial, consumer durables, and infrastructure-related industries are expected to benefit the most. According to an ET report, the total market capitalisation of BSE-listed companies jumped by Rs 5.93 lakh crore, reaching Rs 451.70 lakh crore.

Auto and consumer stocks led the rally, rising 3.4% and 1.8%, respectively. The mid-cap and small-cap indices both registered gains of around 1%. Financial stocks gained 1.6%, supported by the S&P ratings upgrade for major lenders like HDFC Bank and State Bank of India. HDFC Bank’s stock rose by 1.4%, while SBI gained 0.6%. Among other sectoral indices, metals increased by 1.29%, real estate advanced by 1.24%, private banks gained 1.09%, and IT stocks were up 0.92%.

Top Reasons Why the Stock Market Today Is Rallying – GST Reforms

One of the key drivers of today’s market rally is the Modi government’s proposal to introduce a series of major GST reforms. Reports suggest that the government is considering reducing the GST rate on small cars from 28% to 18%. This is part of a broader set of consumption-led tax reforms announced by the Prime Minister, which also include the possibility of reducing GST slabs to just two.

The proposal may also extend to lowering the GST on small petrol and diesel cars and cutting the tax on health and life insurance premiums from the current 18% to 5% or possibly even zero.

If implemented, these measures could take effect by Diwali in October – India’s peak shopping season – which would significantly stimulate demand. According to Dr. V.K. Vijayakumar of Geojit Investments, such reforms are likely to benefit sectors like automobiles and cement, currently taxed at 28%. Companies such as TVS Motors, Hero Motocorp, Eicher, M&M, and Maruti Suzuki may see strong gains, while insurance companies could benefit from lower tax rates on premiums.

S&P Global’s sovereign rating upgrade for India

Another major factor contributing to the surge is S&P Global’s decision to upgrade India’s sovereign credit rating from ‘BBB-’ to ‘BBB’ with a stable outlook. Market sentiment has improved on the back of this positive development, which reflects confidence in India’s economic growth trajectory.

In addition, easing geopolitical concerns following US President Donald Trump’s recent meeting with Russian President Vladimir Putin helped calm fears over immediate oil supply disruptions. Oil prices fell after the US announced that it would not impose new restrictions on Russian crude exports at this time.

Trump also indicated there is currently no need to introduce retaliatory tariffs on countries that continue purchasing Russian oil, which reduced concerns about immediate supply shocks. Analysts said investors will closely monitor Monday’s White House meetings involving Trump, Ukrainian President Volodymyr Zelenskyy, and European leaders regarding possible security assurances for Kyiv.

On the technical front, Shrikant Chouhan, Head of Equity Research at Kotak Securities, commented that both daily and intraday charts are showing positive reversal patterns, with a bullish candle forming on weekly charts. He added that the market is likely to remain in a bullish phase if the Nifty50 stays above 24,450 and the Sensex above 80,000. A breakout above the 24,800–24,950 and 81,200 resistance zones could push the indices towards 25,000 and 81,800, respectively.

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