The Indian stock market clocked healthy gains on Monday, August 18, boosted by a confluence of domestic and global factors.
While Prime Minister Narendra Modi’s announcement on GST reforms was a key catalyst boosting market sentiment, expectations of relief on the US tariff front, S&P Global’s upgrade of India’s credit rating, and optimism over a possible end to the Russia-Ukraine war further added to the bullish mood.
The Sensex jumped over 1,100 points during the session but ended 676 points, or 0.84 per cent, higher at 81,273.75. The Nifty 50 closed the day at 24,876.95, rising 246 points, or 1 per cent. The BSE Midcap and Smallcap indices rose 1 per cent and 1.39 per cent, respectively.
Investors earn about ₹6 lakh crore in a day as the market capitalisation of the firms listed on the BSE rose to ₹451 lakh crore from ₹445 lakh crore in the previous session.
Indian stock market: 10 key highlights from the day
1. Why did the Indian stock market rise today?
PM Modi’s announcement on the rationalisation of GST boosted sentiment. Additionally, positive developments around the Russia-Ukraine front also underpinned sentiment.
Stocks such as Maruti, Bajaj Finance, HDFC Bank and Mahindra and Mahindra ended as the top contributors to the gains in the Nifty index.
Banking stocks gained after S&P Global Ratings, on Friday, 15 August, upgraded the long-term issuer credit ratings for seven Indian Banks and three financial institutions.
The auto sector witnessed traction as it is seen as the key beneficiary of the proposed GST reforms.
“The proposed rationalisation of GST is a sentiment booster for the domestic market. Additionally, the recent conclusion of the US and Russia summit, without any escalation in geopolitical tensions, has helped ease investor anxiety. The automobile sector outperformed, emerging as a key beneficiary of the anticipated tax reforms,” said Vinod Nair, Head of Research, Geojit Investments.
2. Top gainers in the Nifty 50 index
As many as 38 stocks ended higher in the Nifty index, with Maruti Suzuki India (up 8.92 per cent), Hero MotoCorp (up 6 per cent), and Nestle India (up 5.23 per cent) ending as the top gainers.
3. Top losers in the Nifty 50 index
Shares of ITC (down 1.49 per cent), Eternal (down 1.35 per cent), and Tech Mahindra (down 1.09 per cent) closed as the top losers.
4. Sectoral indices today
Nifty Auto clocked a stellar gain of 4.18 per cent, followed by Consumer Durables (up 3.38 per cent), Realty (up 2.17 per cent), and Metal (up 1.86 per cent).
Nifty Bank rose by 0.71 per cent, while the Financial Services index jumped 1.05 per cent.
Nifty IT (down 0.57 per cent), Media (down 0.22 per cent), Healthcare (down 0.08 per cent), and Pharma (down 0.05 per cent) ended in the red.
5. Most active stocks in terms of volume
Vodafone Idea (67.05 crore shares), Suzlon (17.52 crore shares), and Ola Electric Mobility (9.5 crore shares) were the most active stocks in terms of volume on the NSE.
6. 15 stocks jump over 15% on BSE
Laxmi Organic Industries, Davin Sons Retail, Southern Petrochemicals Industries Corporation, Pennar Industries, IFB Industries, and Cargosol Logistics, were among the 15 stocks that jumped over 15 per cent on the BSE.
7. Advance-decline ratio
Out of 4,365 stocks traded on the BSE, 2,562 advanced, while 1,627 declined. Some 176 stocks remained unchanged.
8. Over 150 stocks hit 52-week highs
Maruti Suzuki India, Mahindra & Mahindra, Eicher Motors, TVS Motor Company, InterGlobe Aviation (IndiGo), Eternal, and UltraTech Cement were among the 156 stocks that hit their 52-week highs in intraday trade on the BSE.
9. Over 100 stocks fall to 52-week low
As many as 116 stocks, including Cohance Lifesciences, Donear Industries, Dolfin Rubbers, and Agarwal Industrial Corporation, hit their 52-week lows on the BSE.
10. Nifty’s technical outlook
Shrikant Chouhan, the head of equity research at Kotak Securities, believes that the short-term market outlook is positive, but buying on intraday dips and selling on rallies would be the ideal strategy for day traders.
“On the downside, 24,800 and the 20-day SMA of 24,7500 would be key support levels, while 25,000 (50-day SMA) and 25,100 could act as crucial resistance areas for the bulls. However, below 24,750, the uptrend would become vulnerable,” said Chouhan.
According to Rupak De, Senior Technical Analyst at LKP Securities, the sentiment remains positive, with the potential to revisit 25,000 in the coming days.
“Immediate support is placed at 24,800, below which the index may drift towards 24,500. On the higher side, a decisive move above 25,000 could trigger a larger rally in the market,” said De.
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Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
