Investors will focus on domestic high-frequency data, such as HSBC India Manufacturing, Services, and Composite PMIs, to gauge growth momentum. (AI image) Stock market today: Nifty50 and BSE Sensex, the Indian equity benchmark indices, soared in opening trade on Monday on the back of next-generation GST reforms announced by PM Modi during his Independence Day speech, and S&P Global’s credit rating upgrade. While Nifty50 went above 24,950, BSE Sensex was up over 1,000 points. At 9:35 AM, Nifty50 was trading at 24,988.85, up 358 points or 1.45%. BSE Sensex was at 81,678.77, up 1,081 points or 1.34%.The top Nifty50 gainers at this hour are Hero Motocorp, Maruti Suzuki, Bajaj Finance, Bajaj Auto, and M&M. The top losers are HCL Tech, ITC, L&T, Sun Pharma, and Dr Reddys.Market experts noted that Prime Minister Narendra Modi’s announcement regarding potential cuts in goods and services tax has boosted confidence, especially in sectors linked to consumption. The auto, financial, consumer durables, and domestic industries related to infrastructure spending are expected to benefit the most.The total market capitalization of all companies listed on the BSE rose by Rs 5.93 lakh crore, reaching Rs 451.70 lakh crore, according to an ET report.The benchmarks saw significant gains led by auto and consumer stocks, which increased by 3.4% and 1.8%, respectively. Both mid-cap and small-cap indices also grew by approximately 1%.Financial stocks rose by 1.6%, supported by an S&P ratings upgrade for lenders such as HDFC Bank and State Bank of India. HDFC Bank’s shares increased by 1.4%, while SBI’s shares went up by 0.6%.In other sectoral indices, metals increased by 1.29%, real estate advanced by 1.24%, private banks rose by 1.09%, and IT stocks climbed by 0.92%.
Why is stock market rallying today? Top reasons
1) Donald Trump-Vladimir Putin DiscussionsFollowing a meeting with Russian President Vladimir Putin in Alaska on Friday, US President Donald Trump indicated a shift towards Moscow’s perspective, emphasizing the importance of a peace agreement in Ukraine over a ceasefire.Trump is scheduled to meet with Ukrainian President Volodymyr Zelenskiy and European leaders on Monday to explore potential security assurances for Kyiv, although specific proposals have not yet been detailed.Oil prices decreased after the US refrained from implementing new restrictions on Russian exports after the Trump-Putin discussions. Trump also mentioned that he does not currently see the need to impose retaliatory tariffs on countries like China that continue purchasing Russian oil, though he may reconsider this in “two or three weeks.” These comments alleviated concerns about immediate supply interruptions.”India-US trade discussions are unlikely to occur before the August 27 deadline. The potential 50% tariff on India, referred to as the ‘Trump sword,’ will dampen market optimism that would otherwise be boosted by positive developments. The results of today’s White House meeting on the Russia-Ukraine conflict will be closely monitored,” said Dr. V.K. Vijayakumar, Chief Investment Strategist at Geojit Investments.2) GST ReformsThe Modi government’s plan to implement significant tax reforms has positively influenced sentiment. According to a government source cited by Reuters, India has proposed reducing the GST on small cars from 28% to 18%. This proposal is part of a broader set of consumption tax cuts announced by Prime Minister Narendra Modi, which may include reducing the GST tax slabs to just two. The reduction is anticipated to boost sales for automakers like Maruti Suzuki, India’s largest car manufacturer.Additionally, the government is considering lowering the GST on small petrol and diesel cars to 18%, and reducing the tax on health and life insurance premiums from the current 18% to 5% or possibly zero, according to reports.If approved, these measures are expected to be implemented by Diwali in October, which is India’s biggest shopping season.Dr. V.K. Vijayakumar from Geojit Investments said, “There are strong market tailwinds with the potential to drive it higher. The prime minister’s announcement of the next phase of GST reforms by Diwali is a significant positive. The expectation is that most goods and services will fall into the 5% and 18% tax brackets.”Vijayakumar noted that sectors like automobiles and cement, currently taxed at 28%, could benefit, highlighting companies such as TVS Motors, Hero, Eicher, M&M, and Maruti as potential beneficiaries. Insurance companies might also gain if premiums are taxed at a lower rate. 3) S&P ratings upgradeS&P Global has raised India’s credit rating from ‘BBB-’ to ‘BBB’ with a stable outlook. This comes as a big boost for the world’s fifth largest economy. S&P Global has also said that the impact of US tariffs is not likely to be much on India’s growth story.”S&P 500’s upgrade of India’s sovereign credit rating is another positive factor,” Vijayakumar said.4) Asian Markets RiseAsian stocks rose on Monday, driven by a positive risk sentiment ahead of a crucial week for US interest-rate decisions, while oil prices fell as concerns about Russian supply disruptions diminished.Japan and Taiwan’s benchmark indices reached record levels, and Chinese blue-chip stocks hit their highest point in 10 months. The broader MSCI index of Asia-Pacific shares outside Japan slightly declined after hitting a four-year high last week. Chinese blue chips increased by 1%, bringing their quarterly gains to nearly 8%.Japan’s Nikkei climbed 0.9% to a new record, fueled by expectations of more relaxed global monetary policies. 5) Technical AnalysisShrikant Chouhan, Head of Equity Research at Kotak Securities, observed that daily and intraday charts are indicating positive reversal patterns, with a bullish candle on the weekly charts suggesting a continuation of the pullback in the short term.Chouhan mentioned that the market is expected to open around 24,800–24,950, which is considered a significant resistance zone. He stated, “We anticipate that 24,450/80,000 will serve as a crucial support area for short-term traders. If the market remains above this level, the bullish trend is likely to persist. On the upside, 24,800/81,200 will be the immediate resistance zone for the bulls. A successful breakout above this could propel the market towards 24,900–25,000/81,500–81,800.”(Disclaimer: Recommendations and views on the stock market and other asset classes given by experts are their own. These opinions do not represent the views of The Times of India)