By Kavita Mistry 
The Indian stock market kicked off the week with a robust rally on Monday, August 18, as easing global tensions and positive domestic reforms lifted investor sentiment. The Sensex opened at 81,315.79 and quickly surged over 1,000 points to touch an intraday high of 81,619.59. The Nifty 50 mirrored the gains, opening at 24,938.20 and rising to 24,957.55.
Market Capitalisation Surge
The rally translated into a sharp jump in overall investor wealth. Within the first five minutes of trade, the total market capitalisation of BSE-listed firms rose by ₹5 lakh crore, climbing from ₹445 lakh crore to over ₹450 lakh crore. At 9:30 AM, the Sensex was trading 1,084 points higher at 81,682, while the Nifty was up 351 points at 24,983.
Broad-Based Buying Across Sectors
The uptrend was not limited to blue-chip indices. The BSE Midcap and Smallcap indices also advanced by more than 1% each, reflecting broad-based buying interest. Analysts said sectors including autos, cement, and insurance stocks were leading the rally on the back of reform-driven optimism.
Drivers Behind the Rally
Several key developments contributed to the bullish momentum:
- Hopes of Russia-Ukraine Conflict Resolution – Reports of possible diplomatic progress raised hopes of reduced global uncertainty.
- Relief on US Tariffs – Signals from US President Donald Trump about reconsidering secondary tariffs on India boosted trade sentiment.
- S&P Credit Rating Upgrade – A positive rating revision for India supported confidence in the country’s economic outlook.
- PM Modi’s GST Reform Announcement – The Prime Minister unveiled plans for next-generation GST reforms in his Independence Day speech, aiming to rationalise tax slabs by Diwali.
- Sectoral Gains from GST Cuts – Autos and cement, currently taxed at 28%, are expected to benefit significantly, alongside insurance firms.
Analysts’ Take
Brokerage firm Emkay Global described GST rationalisation as a “growth-accretive, big-ticket reform,” projecting a Nifty target upgrade to 28,000 by September 2026. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, called the reform announcement a “big positive,” particularly for auto and cement sectors, predicting strong investor response.
Outlook
Market experts believe the combination of global relief, tax reforms, and credit rating upgrades could sustain positive momentum. However, they also caution that geopolitical uncertainties and inflation trends will remain key factors for investors in the coming months.