GST Reform Expectations Drove Gains: Hopes of tax rationalization sparked a broad-based rally, lifting automobiles, FMCG, insurance, and consumer durables.
Domestic Investors Provided Strong Support: Despite Rs. 1,926 crore in FII outflows, robust DII buying of Rs. 3,895 crore cushioned the market and fueled momentum.
Nifty Nears 25,000, Sensex Heads Toward 82,000: Benchmark indices traded higher, but sustainability in momentum depends on concrete GST policy announcements and global cues.
The Indian stock market today, on August 18, 2025, signaled investor enthusiasm as benchmark indices posted substantial gains across the board at press time. Nifty 50 index surged by 257.80 points, representing a healthy 1.05% increase to close at 24,889.10. It edged closer to the psychologically significant 25,000 mark. Meanwhile, Sensex climbed 703.34 points or 0.87% to reach 81,301, approaching the 82,000 resistance level.
This rally was primarily fueled by widespread expectations of potential GST (Goods and Services Tax) rationalization. The market's bullish sentiment was further reinforced by strong domestic institutional support and positive corporate developments across multiple industries.
The rally witnessed broad-based participation from various sectors, indicating strong underlying market sentiment. According to live stock updates, Nifty Bank index gained 354.25 points or 0.64% to reach 55,696.10, showing resilience after recent regulatory concerns and volatility.
The broader market indices showcased exceptional strength, with the BSE Smallcap index surging 617.05 points or 1.19% to reach 52,405.93. This outperformance of smaller companies indicates a strong risk appetite among investors. However, the IT sector faced pressure, with Nifty IT index declining by 283.30 points or 0.81% to trade at 34,549.90.
According to Moneycontrol data on top gainers on Nifty 50, the day's standout performer was Maruti Suzuki. The stock experienced its biggest single-day gain in nearly five years. Maruti Suzuki share price soared 8.93% to reach Rs. 14,039. This surge generated significant trading volumes worth Rs. 2,099.19 crore, making it the most actively traded stock of the day.
Nestlé emerged as another major gainer, with its shares climbing 6.95% to Rs. 1,165.10. Hero MotoCorp gained 6.31% to reach Rs. 5,005, while Bajaj Finance added 5.85% to trade at Rs. 911.85. Mahindra & Mahindra rounded out the top gainers, with a solid 4.61% increase to Rs. 3,415.80.
Despite the broad-based rally, some stocks faced selling pressure. NSE list of top losers on Nifty 50 shows thatLarsen & Toubro led with a decline of 1.22% to Rs. 3,628. The dip is possibly due to profit-booking after recent gains. Infosys, the IT services giant, fell 1.11% to Rs. 1,431.70, reflecting the broader weakness in the technology sector.
Dr. Reddy's Laboratories dropped 0.99% to Rs. 1,247.80, while Bharat Electronics and Eternal also traded in negative territory with declines of 0.58% and 0.80% respectively. The relatively modest declines highlight the strength of today's market rally.
The earnings season continued to provide mixed signals for market participants. Vodafone Idea shares rose despite reporting widened losses, with the stock gaining ground as revenue increased 4.9% year-on-year to Rs. 11,022.5 crore.
On the pharmaceutical front, Alembic Pharmaceuticals received positive news. It got the USFDA approval for Tretinoin Cream, addressing a market worth approximately $94 million. The stock responded positively, gaining 0.77% to Rs. 965.60.
JK Cement announced expansion plans with board approval for a Rs. 4,805 crore greenfield project involving a 7 million tonnes per annum capacity addition. The stock surged 4.88% to Rs. 7,342.70, touching a 52-week high. National Fertilizers, on the other hand, was disappointed with widened losses and a 30.6% revenue decline, leading to a 1.61% drop in its stock price to Rs. 90.10.
Also Read: JSW Cement Share Price Rises 3.24% to Rs. 150.80; Intraday High at Rs. 151.68
The day's rally was primarily driven by growing expectations of GST rationalization across various sectors. Insurance stocks rallied significantly on hopes that GST on health and life policies could be reduced to 5% or completely exempted. FMCG, air conditioner, and consumer durables shares surged up to 9% on similar expectations.
Asian markets provided a supportive backdrop. According to Moneycontrol data, Japanese equities gained ground as Nikkei added 0.8% and Topix rose 0.6%. This positive regional sentiment helped boost confidence in Indian markets.
Economic discussions in India around potential stimulus measures also contributed to market optimism. The Modi government may increase domestic expenditure by $50 billion to offset any impact from Trump tariffs. Hence, suggesting government commitment to supporting economic growth.
Today's performance showed the resilience of Indian stock markets and their ability to respond positively to potential policy reforms. The stock market rally today is led by consumer-facing sectors and supported by strong domestic buying. Hence, suggesting underlying strength in market fundamentals.
Corporate earnings will continue to influence individual stock movements. Investors should closely watch out for official announcements regarding GST reforms and their potential timeline for implementation.
Also Read: US Stock Market Today: US Stocks Dip as Wholesale Inflation Surges, S&P 500 Drops from Record Highs
1. Why is Indian stock market up today?
The rally was primarily driven by expectations of GST rationalization across various sectors, particularly benefiting automobiles, FMCG, and insurance companies. Strong domestic institutional buying and positive Asian market sentiment also contributed to the gains.
2. Which sectors performed best in the stock market today?
Automotive and FMCG sectors led the rally, with Maruti Suzuki gaining 8.53% - its biggest rise in five years. Consumer durables, insurance, and banking sectors also posted strong gains, while IT faced some weakness.
3. Which is the top trading stock today?
The rally showed broad-based participation with BSE Smallcap gaining 1.19% and strong volumes across major stocks. Maruti Suzuki alone recorded trading volumes of over Rs. 2,099 crore, indicating high investor interest.
4. What was the impact of foreign and domestic investment flows?
While FIIs continued selling with outflows of Rs. 1,926.76 crore, DIIs provided strong support with buying of Rs. 3,895.68 crore, helping sustain the market rally despite foreign pressure.
5. What should investors watch for in the coming sessions?
Key factors include official announcements on GST reforms, continuation of domestic buying support, corporate earnings results, and global market developments. The sustainability of gains will depend on concrete policy implementation timelines.
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