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Indian stock markets ended higher on Monday with the BSE Sensex closing 676 points higher at 81,273.75, while the Nifty50 settled at 24,876.95, up 246 points or one per cent. Earlier in the session, Nifty had briefly crossed the 25,000 mark, touching an intraday high of 25,022.
The Nifty50 was supported by automobile, consumer, and realty stocks, with Maruti Suzuki, Hero MotoCorp, Bajaj Finance, Nestle India, and Bajaj Auto making gains. On the other hand, ITC, L&T, Eternal, Tech Mahindra, and NTPC ended in the red. Sectorally, Nifty Auto, Nifty Consumer Durable, and Nifty Realty outperformed, while Nifty IT and Nifty Media closed lower. Broader indices also mirrored the uptrend, with Nifty Midcap and Smallcap 100 climbing over one per cent. Out of the Nifty 500 stocks, 385 advanced. According to Sudeep Shah, head of technical and derivatives research at SBI Securities, "The benchmark index Nifty opened with a strong upside gap, driven by multiple positive developments. However, after touching 25,022, it witnessed profit booking and finally ended at 24,876." Analysts noted that the zone of 24,800-24,770 will act as an important support for Nifty, while the 25,000-25,050 range remains a hurdle. Any sustained move above 25,050 could trigger a rally towards 25,200 and 25,350 in the short term. Ashika Institutional Equities said, "Indian equities kicked off the week on a strong note, opening with a gap-up after reports suggested that the government is weighing a cut in Goods and Services Tax (GST) on small cars to 18 per cent from the current 28 per cent." The development gave auto stocks a sharp boost and set the tone for the session. Adding to the optimism, S&P Global Ratings upgraded India's sovereign outlook. Prime Minister Narendra Modi announced in his Independence Day speech that the government is coming with next generation GST reforms and people will have "double Diwali". "The proposed rationalisation of GST is a sentiment booster for the domestic market. The automobile sector outperformed, emerging as a key beneficiary of the anticipated tax reforms," said Vinod Nair, head of research, Geojit Investments Limited. Global developments also offered some relief. Shah also pointed out that no major outcomes came from the Trump-Putin meeting, but the absence of fresh geopolitical concerns steadied markets. (ANI)
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