BIZ DESK
Domestic Indian equity markets kicked off the week with strong gains on Monday, buoyed by robust buying in auto, banking, and consumer durables, as investor sentiment surged on the back of upcoming GST reforms and easing geopolitical tensions.
The Sensex jumped 676.09 points or 0.84%, closing at 81,273.75, after touching an intraday high of 81,765.77. The Nifty 50 surged 245.65 points or 1% to settle at 24,876.95, inching closer to the 25,000 mark.
GST Reforms, Geopolitical Calm Boost Market Mood
According to Vinod Nair, Head of Research at Geojit Financial Services, the proposed rationalisation of the GST structure has emerged as a strong sentiment driver. He also cited the non-escalatory outcome of the recent US–Russia summit as easing global investor concerns.
Nair highlighted that the automobile sector is poised to benefit the most from GST changes, while consumption-driven sectors could gain further momentum in the second half of FY26, aided by a recovery in demand.
Top Gainers and Sectoral Leaders
Among the top gainers on the Sensex were Maruti Suzuki, Bajaj Finance, Mahindra & Mahindra, Adani Ports, Bajaj Finserv, Trent, Hindustan Unilever, Tata Steel, Asian Paints, Tata Motors, Axis Bank, and Bharti Airtel. On the downside, ITC, Tech Mahindra, L&T, NTPC, and Infosys posted losses.
Sectorally, Nifty Auto led the rally, soaring 4.18% (1,008 points), followed by Nifty FMCG (+1.19%), Nifty Financial Services (+1.05%), and Nifty Bank (+0.71%). Only Nifty IT bucked the trend and ended in the red.
Broader Markets Join the Surge
The rally extended to broader indices as well:
- Nifty Next 50 rose 1.34% (888 points)
- Nifty 100 gained 1.05% (266 points)
- Nifty Midcap 100 advanced 1.08% (608 points)
- Nifty Smallcap 100 climbed 1.38% (242 points)
Rupee Strengthens Amid Reform Optimism
The Indian rupee appreciated by 24 paise, closing at 87.31 against the U.S. dollar. Jateen Trivedi, VP of Research at LKP Securities, noted that the GST reform initiative comes at a time when India is navigating export pressure due to ongoing U.S. tariff concerns. He expects the rupee to trade in the 87.00–87.75 range in the near term.
Outlook
With GST reforms in focus and macro sentiment stabilizing, analysts expect market momentum to continue in the near term—especially in auto and consumption-led segments. However, global cues and progress on policy implementation will remain key watchpoints.