Daijiworld Media Network - Mumbai
Mumbai, Aug 18: Indian stock markets ended Monday’s session with strong gains, driven by broad-based buying across auto, banking, and consumer durable sectors. The rally was fueled by optimism surrounding the proposed Goods and Services Tax (GST) reforms and easing geopolitical tensions post the US-Russia summit.
The BSE Sensex surged 676.09 points or 0.84% to close at 81,273.75, after opening sharply higher at 81,315.79. The index touched an intraday peak of 81,765.77 before paring some gains. Meanwhile, the NSE Nifty climbed 245.65 points or 1.0%, ending at 24,876.95.
“The proposed rationalisation of GST is a major sentiment booster,” said Vinod Nair, Head of Research at Geojit Financial Services. “It especially benefits consumption-linked sectors like auto, which are now expected to pick up pace in the second half of FY26. Also, the lack of escalation in geopolitical risks post the Alaska summit has calmed investor nerves.”
Auto Sector in Top Gear
The Nifty Auto index was the standout performer, rallying 1,008 points or 4.18%, with major players like Maruti Suzuki, Tata Motors, Mahindra & Mahindra, and Bajaj Auto clocking strong gains.
Other key sectoral indices also ended higher:
• Nifty Bank: +393 points (0.71%)
• Nifty Financial Services: +275 points (1.05%)
• Nifty FMCG: +647 points (1.19%)
• Nifty IT: Ended in the red, under pressure from select heavyweight tech stocks.
Top Gainers and Losers
Gainers:
Among the Sensex constituents, Maruti Suzuki, Tata Motors, Bajaj Finance, Ultratech Cement, Axis Bank, Adani Ports, and Bharti Airtel were the major gainers.
Losers:
On the flip side, ITC, Tech Mahindra, Infosys, NTPC, and L&T closed in negative territory.
Broader Market Performance
The broader indices mirrored the upbeat sentiment:
• Nifty Next 50: +888 points (1.34%)
• Nifty 100: +266 points (1.05%)
• Nifty Midcap 100: +608 points (1.08%)
• Nifty Small Cap 100: +242 points (1.38%)
Currency Watch
The Indian rupee also appreciated, gaining 0.24 paise to close at 87.31 against the US dollar.
“The GST reform is seen as a move to stimulate the domestic economy, especially amid global trade pressures due to U.S. tariff concerns,” noted Jateen Trivedi, Analyst at LKP Securities. “We expect the rupee to remain in the 87.00–87.75 range in the near term.”
Outlook
With investor sentiment buoyed by policy reforms and easing global risks, markets are expected to maintain momentum in the short term. However, global cues and inflation data will remain critical in shaping medium-term direction.