Sensex leaps 1,000 points, Nifty reclaims 25,000 as auto stocks fuel rally amid GST buzz; IT, pharma weigh

Sensex, Nifty rally for a second consecutive session

Benchmark indices Nifty and Sensex surged at the open on Monday, August 18, buoyed by twin triggers — anticipation of a major GST revamp following Prime Minister Modi’s Independence Day address, and a landmark upgrade of India’s sovereign rating by S&P Global to BBB from BBB-, the first such move in nearly two decades with far-reaching implications for the economy.

Auto, bank and metal stocks were the top gainers in the opening trade while the mid and smallcaps also mirrored positive trends to rise almost a percent each.

At about 9:45 am, the Sensex was up 1,148.56 points or 1.43 percent at 81,746.22, and the Nifty was up 385.20 points or 1.56 percent at 25,016.50. About 2342 shares advanced, 967 shares declined, and 163 shares were unchanged.

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"The outlook appears to be turning more favourable. A historic S&P ratings upgrade after 18 years has strengthened investor confidence and could pave the way for renewed foreign inflows. At the same time, next-generation GST reforms expected by Diwali are likely to streamline the tax structure and energise consumption-driven sectors," Devarsh Vakil, Head of Prime Research at HDFC Securities, said. "On the global front, potential progress on ceasefire talks between Russia and Ukraine, following the Trump-Putin summit, may help reduce risk-off sentiment. Adding to the momentum, sizable short positions held by foreign portfolio investors raise the prospect of a sharp short-covering rally, positioning Indian equities for a stronger phase ahead," he added.

At the open on Monday, sectoral action was led by autos, with the Nifty Auto index jumping 3.6 percent, followed by consumer durables, up 2.7 percent. Banking stocks also lent support, with the Nifty Bank rising 1.2 percent and the Private Bank index up 1.4 percent. Metals, infra, PSU banks and energy saw modest gains, while FMCG and realty were flat. On the downside, IT and pharma edged lower in early trade. The India VIX was up 2.8 percent, reflecting heightened volatility.

Among stocks, automobile makers such as Hero MotoCorp, Maruti Suzuki, Bajaj Auto, M&M and Tata Motors jumped up to 8 percent on Monday, August 18, after reports of a likely GST cut on entry-level two-wheelers, compact cars and hybrids. Hero MotoCorp topped the Nifty gainers’ list with a rally of more than 8 percent.

Tobacco and online gaming stocks traded in the red on Monday, August 18, after reports suggested that the Centre proposed a 40 percent GST slab on 'sin goods,' sparking some selling in these counters. Key tobacco stocks were trading with losses, ITC, Godfrey Phillips, and VST Industries were lower between 0.5 percent to 1 percent. Online gaming stocks, Nazara Technologies Ltd and Delta Corp Ltd, both sank two percent.

Telecom company Vodafone Idea rose 3 percent after it reported a Q1 FY26 net loss of Rs 6,608 crore, narrowing from Rs 7,166 crore in Q4 FY25. Revenue rose 5 percent YoY to Rs 11,022.5 crore, while ARPU grew 15 percent to Rs 177. UBS has maintained a Neutral call with a target price of Rs 8.5 per share after the company’s Q1 results came in largely in line with estimates.

Technical View

At present, the index is repeatedly facing supply pressure near the 20-DEMA cluster at 24,700–24,800. A sustained close above this area could spark short covering. On the flip side, failure to hold above 24,500 could extend the decline towards the next immediate support at 24,320, which may accelerate selling pressure. The daily RSI remains around 40, showing no strong reversal signal. Overall, the structure favours a sideways bias, with range-bound strategies continuing to hold merit.

HDFC Bank, ICICI Bank, Maruti Suzuki, M&M, and Hero MotoCorp were the top gainers on the Nifty.

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