Is the Indian Stock Market Rally Here to Stay?
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Synopsis
The Indian stock market has witnessed a significant rally, with the Sensex rising by 370 points. This upward trend is attributed to GST rationalisation and improved credit ratings. With positive signals from various sectors, investors are keenly watching the market's next moves. Will this rally continue? Stay tuned for in-depth analysis.
Key Takeaways
- Sensex rose by 370 points or 0.46%.
- Positive sentiment due to GST rationalisation.
- Major gainers included Tata Motors and Hindustan Unilever.
- Nifty ended at 24,980.65, up 103.70 points.
- Broader indices also showed gains, with Nifty Midcap 100 up 551 points.
Mumbai, Aug 19 (NationPress) The Indian benchmark indices experienced a remarkable rally on Tuesday, marking a second consecutive day of gains, driven by the GST rationalisation measures.
Sensex concluded at 81,644.39, rising by 370 points or 0.46 percent. The 30-share index opened the day with a significant gap-up at 81,39.11, compared to the previous session's close of 81,273.75. Continuing the momentum from the previous session, the index reached an intra-day high of 81,755.88, propelled by purchasing in sectors such as auto, FMCG, oil and gas, and more.
Nifty wrapped up the session at 24,980.65, gaining 103.70 points or 0.42 percent.
According to Vinod Nair, Head of Research at Geojit Investments Limited, "The national market sustained its renewed momentum, driven by expectations of GST rationalisation and a recent upgrade in India's credit rating."
Moreover, optimism was bolstered by signs of reducing geopolitical tensions between Russia and Ukraine, shifting the near-term outlook from consolidation to a more positive stance, Nair noted.
Among the top gainers in the Sensex basket were Tata Motors, Adani Ports, Eternal, Tech Mahindra, Hindustan Unilever, Kotak Bank, Maruti, Bharati Airtel, Tata Steel, ITC, Ultratech Cement, and Infosys. In contrast, Bajaj FinServ, Power Grid, Mahindra and Mahindra, HDFC Bank, and BEL ended in negative territory.
Most sectoral indices wrapped up the day in the green, with Nifty Auto (up 329 points or 1.31 percent) and Nifty FMCG (up 582.40 points or 1.05 percent) leading the sectoral rally, continuing the momentum from the GST reform announcement. Nifty IT (up 121 points) and Nifty Bank (up 130 points) also ended positively.
The broader indices followed a similar trajectory. Nifty Midcap 100 surged by 551 points or 0.97 percent, Nifty Smallcap 100 soared by 123 points or 0.70 percent, and Nifty 100 climbed by 120 points or 0.47 percent.
On the technical side, Mandar Bhojane from Choice Broking stated, "Following a gap-up opening, the Nifty has maintained a sideways-to-bullish trend for two sessions."
Prices are supported at the 20, 50, 100, and 200 EMAs, indicating robust underlying strength. If the index holds above 25,050, it could potentially reach 25,250 and 25,500 in the near future, he added.
Point of View
The ongoing rally in the Indian stock market reflects a combination of sound economic policies and positive investor sentiment. It is crucial for investors to stay informed and engage with the market's dynamics, ensuring they make decisions that align with long-term growth and stability.
NationPress
19/08/2025
Frequently Asked Questions
What led to the recent rally in the Indian stock market?
The rally was primarily driven by the GST rationalisation measures and a recent upgrade in India's credit rating, which boosted investor confidence.
Which sectors performed well during this rally?
Sectors such as auto, FMCG, oil and gas experienced significant gains, contributing to the overall market surge.
What is the outlook for the Nifty index in the coming sessions?
If the Nifty index maintains levels above 25,050, it has the potential to reach 25,250 and 25,500 in the near future.
