FPJ News Service mumbai

Indian markets witnessed a sharp rally on Monday amid favourable macros, proposed big bang GST reforms, S&P’s encouraging credit rating actions, expected fruitful meeting between Chinese Foreign Minister Wang Yi and PM Modi today (August 19), and Trump’s special envoy’s comments that Russia had agreed to allow the US and Europe to give Ukraine “robust” security guarantees as part of a potential peace deal. 

The investors’ wealth surged by Rs 6.17 lakl core on Monday. The 30-share BSE Sensex jumped 676.09 points to settle at 81,273.75. During the day, it gained 1,168.11 points to 81,765.77.  The 50-share NSE Nifty climbed 245.65 points to close at 24,876.95. Intra-day, it surged 390.7 points to 25,022.

“The proposed rationalisation of GST is a sentiment booster for the domestic market. Additionally, the recent conclusion of the US and Russia summit, without any escalation in geopolitical tensions, has helped ease investor anxiety. The automobile sector outperformed, emerging as a key beneficiary of the anticipated tax reforms. In H2FY26, we expect the consumption-led sectors to show some traction on account of demand revival,” said Vinod Nair, head of research, Geojit Investments.

“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, is a big positive trigger. The expectation is that most of the goods and services will be in the 5% and 18% tax slabs. Sectors like autos and cement which are presently in the 28% tax slabs are expected to benefit. TVS Motors, Hero, Eicher, M&M and Maruti are likely to respond positively to the news,” said Dr VK Vijayakumar, chief investment strategist at Geojit Investments.

Insurance companies are also expected to benefit from the GST revision. S&P 500 upgrading India’s sovereign credit rating is another major positive.