Stock Market Alert: Sensex Jumps 1100Pts, Nifty Above 24.9K; Why Is Stock Market Rising Today? Explained

Stock Market Alert: Nifty and Sensex made a strong start to the week, buoyed by development related to the Goods and Services Tax (GST) reforms, S&P's upgrade on the Indian economy, etc. Nifty 50 opened 306 points higher at 24,938 points. Whereas, the BSE Sensex was up nearly 718 points and was trading at 81,315 points.

Overall stock market showcased a strong revival on Monday after Prime Minister Narendra Modi announced that the central government has sent a proposal to reduce GST slabs.

Stock Market Opening Today

Nifty 50 was trading 1.5% higher, whereas the BSE Sensex was trading around 1,000 points higher at 9:42 am. Nearly all the broad market indices were trading in green with Nifty 100, 200, 500, Nifty Midcap 50, etc , surging nearly 1.4%. Nifty Bank was up around 1.29%, whereas, nearly all the broadmarket indices were also rising on Monday.

Nifty Auto was up around 4.3%, whereas Nifty Financial Services was trading around 2% higher. Additionally, Nifty FMCG, Nifty Metal, Nifty Private Bank, etc were trading nearly 1.5% higher.

On the BSE Sensex, nearly 2,371 stocks were advancing, whereas 1,000 stocks were declining at 9:50 am. Around 83 stocks had touched the 52-week high mark, whereas 50 stocks had dipped to a 52-week low mark. As the overall stock market sentiment remains positive, nearly 130 stocks have touched the upper circuit, and around 93 stocks have dipped to the lower circuit mark.

Why Is Stock Market Rising Today?

The strong revival of the Indian stock market today has come against the backdrop of a host of positive developments related to the GST, Indian economy, and trade tariffs.

GST Reforms

The central government has proposed to introduce major GST reforms by Diwali this year. As per the proposal the GST slabs are likely to be reduced to 5% and 18%. Additionally, nearly 90% of the items in the 28% slabs may be shifted to the 18% slab. Implementation of the GST reform proposal would give a major boost to the consumer spending and positively impact sectors like auto, IT, cement, FMCG, consumer durables, etc.

S&P Upgrades Rating on Indian Economy

S&P has upgraded India's sovereign credit from BBB to BBB-. The revision in India's credit is likely to be a major boost to investors' sentiment and will reflect a powerful endorsement of India's sustained economic resilience and prudent fiscal management.

Easing Tensions Between Russia-US

"Going forward, the FII activity will be influenced by the action on the tariff front. Latest news of easing of tensions between the US and Russia and no further sanctions on Russia indicate that the secondary tariff of 25 percent imposed on India is unlikely to come into effect after August 27th. This is a positive," VK Vijayakumar, chief investment strategist, Geojit Investments Limited, told PTI.