On August 18th, the stock market closed with a surge, driven by expectations of GST reforms. The Sensex jumped 676 points to close at 81,273.75, and the Nifty rose by 245.65 points to close at 24,876.95. The auto, cement, and insurance sectors saw significant gains. Out of 3,147 shares, 2,014 advanced, while 1,047 declined.
Stock Market Closing: Following PM Modi's announcement from the Red Fort on August 15th regarding GST reforms, the stock market witnessed a b rally on August 18th. The Sensex closed up 676.09 points at 81,273.75, and the Nifty closed up 245.65 points at 24,876.95. Shares in sectors like auto, cement, and insurance rallied. The market was also supported by positive signals such as S&P rating upgrade, strength in global markets, relief in crude prices, and a strengthening rupee.
NSE Trading Update
A total of 3,147 shares were traded on the National Stock Exchange (NSE) today. Of these, 2,014 shares closed with gains, while 1,047 shares closed with losses. Additionally, 86 shares remained unchanged.
Key Reasons for the Market Rally
Expectations of GST Reform
PM Modi announced on August 15th that a new GST structure would be implemented by Diwali. Under this, the tax slabs for many goods and services will be placed in the 5 percent and 18 percent categories. The auto and cement sectors, in particular, are expected to benefit the most from this. In addition, the insurance sector will also see a positive impact.
S&P Global's Rating Upgrade
S&P Global upgraded India's credit rating from BBB- to BBB for the first time since 2007. The upgrade was attributed to b economic growth, confidence in policy, and fiscal reforms. This move had a significantly positive impact on market sentiment.
Strength in Global Markets
Markets in Japan, Shanghai, and Hong Kong closed in the green. Wall Street futures also showed strength, which further boosted investor confidence.
Fall in Crude Oil Prices
The price of Brent crude oil fell to $65.82 per barrel today. This is expected to reduce the pressure on India's import bill and may also have a positive impact on inflation.
Rupee Strengthens
The rupee closed 20 paise higher at 87.39 against the dollar today. The strength of the stock market also supported the currency.
Impact of International Political Events
US President Donald Trump indicated that secondary tariffs might not be imposed on Russian oil. This raised hopes that a potential economic shock to India would be averted, and the market saw relief.
Today's Top Gainer and Loser Shares
In today's trading, several shares provided significant gains and profits to investors. The auto sector, metals, and banking shares saw the highest gains. Meanwhile, some technology and pharmaceutical companies' shares experienced slight declines.
Investor Enthusiasm
Today's trading clearly shows that investor confidence has increased significantly regarding GST reform and economic reforms. The b closing of both the Sensex and Nifty indices indicates that market sentiment is currently positive.
