The Indian stock market posted healthy gains on August 18, lifted by a mix of domestic and global cues.
Prime Minister Narendra Modi’s announcement on GST reforms proved a major catalyst for sentiment. Hopes 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 conflict also supported the bullish trend.
The Sensex surged over 1,100 points intraday but eventually settled 676 points, or 0.84 percent, higher at 81,273.75. The Nifty 50 gained 246 points, or 1 percent, to close at 24,876.95. The BSE Midcap and Smallcap indices advanced 1 percent and 1.39 percent, respectively.
Investors added about ₹6 lakh crore in a single day, as the market capitalisation of BSE-listed companies rose to ₹451 lakh crore from ₹445 lakh crore in the previous session.
1. Why did the Indian stock market rise today?
The announcement on GST rationalisation buoyed sentiment. Positive geopolitical developments, including the US-Russia summit concluding without escalation, also eased investor concerns.
Maruti, Bajaj Finance, HDFC Bank and Mahindra & Mahindra were among the top contributors to the Nifty’s gains.
Banking stocks rose after S&P Global Ratings upgraded long-term issuer credit ratings for seven Indian banks and three financial institutions on August 15. The auto sector also rallied, seen as the prime beneficiary of the proposed GST reforms.
“The proposed rationalisation of GST is a sentiment booster. The automobile sector outperformed, emerging as a key beneficiary of the anticipated tax reforms,” said Vinod Nair of Geojit Investments.
2. Top gainers in the Nifty 50 index
Thirty-eight stocks advanced, with Maruti Suzuki India (up 8.92 percent), Hero MotoCorp (up 6 percent) and Nestle India (up 5.23 percent) leading the list.
3. Top losers in the Nifty index
ITC (down 1.49 percent), Eternal (down 1.35 percent) and Tech Mahindra (down 1.09 percent) were the day’s biggest losers.
4. Sectoral indices
Nifty Auto jumped 4.18 percent, followed by Consumer Durables (up 3.38 percent), Realty (up 2.17 percent) and Metal (up 1.86 percent).
Nifty Bank rose 0.71 percent, while Financial Services added 1.05 percent.
In contrast, Nifty IT (down 0.57 percent), Media (down 0.22 percent), Healthcare (down 0.08 percent) and Pharma (down 0.05 percent) ended lower.
5. Most active stocks by volume
Vodafone Idea (67.05 crore shares), Suzlon (17.52 crore shares) and Ola Electric Mobility (9.5 crore shares) were the most traded on the NSE.
6. Fifteen stocks jump over 15 percent on BSE
Laxmi Organic Industries, Davin Sons Retail, Southern Petrochemicals, Pennar Industries, IFB Industries and Cargosol Logistics were among 15 BSE stocks that surged over 15 percent.
7. Advance-decline ratio
Out of 4,365 stocks traded on the BSE, 2,562 advanced, 1,627 declined and 176 remained unchanged.
8. Over 150 stocks hit 52-week highs
Maruti Suzuki India, Mahindra & Mahindra, Eicher Motors, TVS Motor, InterGlobe Aviation (IndiGo), Eternal and UltraTech Cement were among 156 stocks that hit 52-week highs intraday.
9. Over 100 stocks fall to 52-week lows
As many as 116 stocks, including Cohance Lifesciences, Donear Industries, Dolfin Rubbers and Agarwal Industrial Corporation, slipped to 52-week lows.
10. Nifty’s technical outlook
Shrikant Chouhan of Kotak Securities said the short-term outlook is positive, but traders should buy on intraday dips and sell on rallies.
“Support is at 24,800 and the 20-day SMA of 24,750. Resistance is seen at 25,000 (50-day SMA) and 25,100. A fall below 24,750 would make the uptrend vulnerable,” he noted.
Rupak De of LKP Securitiesadded that sentiment remains positive, with scope for Nifty to revisit 25,000 soon.
“Immediate support lies at 24,800, below which the index may drift towards 24,500. A decisive move above 25,000 could trigger a larger rally,” De said.
