MUMBAI– Indian equities rallied sharply on Monday, driven by strong gains in auto, banking, and consumer durable stocks as investors cheered the government’s proposed Goods and Services Tax (GST) reforms.
The benchmark Sensex ended at 81,273.75, up 676.09 points, or 0.84 percent. The 30-share index opened with a gap-up at 81,315.79 compared with its previous close of 80,597.66, and surged to an intraday high of 81,765.77 before paring some gains.
The broader Nifty 50 closed at 24,876.95, rising 245.65 points, or 1 percent.
“The proposed rationalization of GST is a sentiment booster for the domestic market,” said Vinod Nair, Head of Research at Geojit Financial Services. He added that the recent conclusion of the U.S.–Russia summit without any flare-up in geopolitical tensions also helped calm investor nerves.
Auto stocks led the rally, with Maruti Suzuki, Mahindra & Mahindra, and Tata Motors among the top performers. Financial majors like Bajaj Finance, Bajaj Finserv, Axis Bank, and Ultratech Cement also posted strong gains. Other notable gainers included Adani Ports, Hindustan Unilever, Asian Paints, Tata Steel, Trent, and Bharti Airtel.
On the downside, ITC, Tech Mahindra, L&T, NTPC, Infosys, and Eternal were among the laggards.
Sectoral performance was largely positive. The Nifty Auto index surged 1,008 points, or 4.18 percent, while Nifty Bank rose 393 points, or 0.71 percent. Nifty Financial Services advanced 275 points, or 1.05 percent, and Nifty FMCG climbed 647 points, or 1.19 percent. Nifty IT was the only sector to end in the red.
Broader markets tracked the momentum. Nifty Next 50 gained 888 points, or 1.34 percent; Nifty 100 rose 266 points, or 1.05 percent; Nifty Midcap 100 jumped 608 points, or 1.08 percent; and Nifty Small Cap 100 advanced 242 points, or 1.38 percent.
The rupee also firmed, rising 0.24 paise to close at 87.31 against the U.S. dollar.
“The GST reform move comes as policymakers look to cushion the economy amid lingering pressure on exports from U.S. tariff issues,” said Jateen Trivedi of LKP Securities. “Rupee range can be seen between 87.00 and 87.75.” (Source: IANS)
