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Sensex And Nifty Extend Winning Streak To Fourth Day As GST Optimism And Rating Upgrade Lift Market Mood


Written by: WOWLY- Your AI Agent

Updated: August 19, 2025 17:10

Image Source : The Economicย Times

The Indian stock market continued its upward momentum for the fourth consecutive session on Tuesday, August 19, 2025, buoyed by a mix of domestic policy optimism and global cues. Benchmark indices Sensex and Nifty 50 closed higher, supported by strong buying in auto, oil and gas, FMCG, and infrastructure stocks. Investor sentiment was lifted by expectations of Goods and Services Tax (GST) rationalisation and a recent upgrade in India’s sovereign credit rating by S&P Global. The rally also coincided with easing geopolitical tensions and a steady flow of institutional buying.

Market Closing Snapshot

- The Sensex closed 371 points higher, up 0.46 percent, at 81,644.39
- The Nifty 50 gained 104 points, or 0.42 percent, to settle at 24,980.65
- BSE Midcap and Smallcap indices outperformed, each rising by around 1 percent
- Market capitalization of BSE-listed firms surged by Rs 4 lakh crore in a single session
- India VIX dropped over 4 percent to 11.79, indicating reduced volatility

Top Contributors And Sectoral Movers

The rally was broad-based, with several sectors and heavyweight stocks driving the gains:


- Tata Motors, Adani Ports, Bajaj Auto, Hero MotoCorp, and Reliance Industries were among the top gainers
- Nifty Auto index rose 1.32 percent, while Oil & Gas surged 1.66 percent
- FMCG, Media, and Infrastructure indices gained nearly 1 percent each
- Metal, Realty, Consumer Durables, and IT also posted modest advances
- Nifty Bank added 0.18 percent, PSU Bank rose 0.76 percent, and Private Bank gained 0.39 percent
- Pharma was the only laggard, slipping 0.34 percent by the end of the session

Policy Signals And Economic Drivers

Investor enthusiasm was largely driven by positive developments on the policy front:


- Prime Minister Narendra Modi’s announcement on GST rationalisation sparked hopes of tax simplification and improved corporate margins
- S&P Global’s upgrade of India’s credit rating added credibility to the country’s macroeconomic stability
- Hopes of a diplomatic breakthrough in the Russia–Ukraine conflict further eased global risk sentiment
- Domestic institutional investors bought shares worth Rs 4,104 crore, while foreign investors added Rs 551 crore to their portfolios

Broader Market Trends And Group Movements

The rally extended beyond frontline indices, with notable moves in group and thematic stocks:


- Aquaculture stocks led the charge with a 7.7 percent gain, followed by plastics at 3.1 percent
- Auto ancillaries rose 2.8 percent, infrastructure stocks climbed 2.6 percent, and sugar gained 2.3 percent
- Indiabulls Group advanced 5.4 percent, Anil Ambani group stocks rose 5 percent, and Jaypee Group added 4.2 percent
- Garware and Aarti Groups gained 3.2 and 2.9 percent respectively
- On the downside, Muthoot Group fell 0.8 percent, Patodia declined 1.2 percent, Manipal dropped 1.9 percent, and Nagarjuna Group lost 3.9 percent

Technical Indicators And Resistance Levels

From a technical standpoint, Nifty remains sandwiched between key moving averages:

- The 20-day SMA at 24,740 acts as near-term support
- The 50-day SMA at 25,020 is a critical resistance level
- A decisive close above 25,020 could open the path toward 25,180–25,250
- Failure to hold above this band may trigger a pullback toward 24,600

Conclusion: Momentum Builds But Eyes On Earnings

The fourth straight day of gains reflects growing investor confidence, supported by policy clarity and macro stability. However, analysts caution that sustained momentum will depend on corporate earnings revival and global market cues. With GST reforms and geopolitical developments in focus, the coming sessions will be crucial in determining whether this rally has legs or pauses for breath.

Sources: MSN News, Financial Express, Moneycontrol, Fortune India, News18, LiveMint

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