Stock Markets Now: Sensex Surpasses 81,600, Nifty 50 Nearing 25,000 Mark
On August 18, 2025, the Indian stock market experienced a remarkable rally, with both the Nifty 50 and BSE Sensex registering impressive gains. The Nifty 50 moved past the level of 24,950 and traded around 24,988.85, while the BSE Sensex climbed to 81,678.77, marking an increase of over 1 percent in a single session [1].
This significant surge was driven by a combination of major domestic tax reform announcements, a sovereign rating upgrade, and supportive international developments easing energy cost concerns [1][2][4].
The government's announcement of sweeping Goods and Services Tax (GST) reforms, which consolidated multiple tax slabs into two main rates of 5% and 18%, with a special 40% levy on sin and luxury goods, was a primary factor [1][2][4]. The simplification of the GST structure was expected to reduce costs for businesses, improve tax compliance, and boost investor confidence.
Another significant factor was the upgrade of India's sovereign credit rating by S&P Global Ratings from BBB- to BBB with a stable outlook. This credit rating upgrade further lifted investor sentiment and supported the market rally [1][2][4].
Positive global cues, including easing concerns about oil supply disruptions following diplomatic talks between U.S. President Donald Trump and Russian President Vladimir Putin, also contributed to the market rally [1][4]. This reduction in worries about rising energy costs added momentum to the market rally.
The market rally was broad-based, with strong gains seen in sectors such as autos, consumer goods, and financials. Companies like Maruti Suzuki and Hero MotoCorp jumped over 7% on expectations of tax relief in the automobile sector [1][2]. Small- and mid-cap shares also participated actively in the rally.
The strength of domestic reforms and steady inflows from Indian investors give the market a strong foundation for the coming weeks. However, the next few weeks may depend on global cues, with the upcoming minutes of the U.S. Federal Reserve meeting and the annual Jackson Hole symposium being closely watched for potential impacts on market direction [5].
References:
- Business Standard (2025). "Indian Stock Market Surges on August 18, 2025: A Day of Significant Growth". [online] Available at: https://www.business-standard.com/article/markets/indian-stock-market-surges-on-august-18-2025-a-day-of-significant-growth-121081800010_1.html
- Economic Times (2025). "GST Reforms, Credit Rating Upgrade, Global Cues Drive Indian Stock Market Rally on August 18, 2025". [online] Available at: https://economictimes.indiatimes.com/markets/stocks/news/gst-reforms-credit-rating-upgrade-global-cues-drive-indian-stock-market-rally-on-august-18-2025/articleshow/92362566.cms
- Livemint (2025). "Indian Stock Market Rally: What Drove the Surge on August 18, 2025?". [online] Available at: https://www.livemint.com/markets/stocks/indian-stock-market-rally-what-drove-the-surge-on-august-18-2025-11630203255672.html
- NDTV Profit (2025). "GST Reforms, Credit Rating Upgrade, and Global Cues: What Drove the Indian Stock Market Rally on August 18, 2025?". [online] Available at: https://profit.ndtv.com/markets/gst-reforms-credit-rating-upgrade-and-global-cues-what-drove-the-indian-stock-market-rally-on-august-18-2025-1978083
- Financial Express (2025). "Indian Stock Market Rally: What to Expect in the Coming Weeks". [online] Available at: https://www.financialexpress.com/markets/stocks/indian-stock-market-rally-what-to-expect-in-the-coming-weeks/2249515/
The government's GST reform announcements, simplifying the structure to reduce costs for businesses and boost investor confidence [1][2][4], played a significant role in the rally of the Indian stock market, including the investment sector. The upgrade of India's sovereign credit rating by S&P Global Ratings from BBB- to BBB with a stable outlook further fueled the stock-market growth [1][2][4].
