On Monday, India’s benchmark stock indices recorded impressive gains, reflecting renewed optimism among investors. The S&P BSE Sensex surged by 676.09 points, closing at 81,273.75, while the NSE Nifty50 advanced by 245.65 points, settling at 24,876.95. The upward movement was largely influenced by positive developments surrounding potential changes in the Goods and Services Tax (GST), which lifted overall market sentiment and encouraged buying across key sectors.
Vinod Nair, Head of Research at Geojit Investments Limited, emphasized that the proposed rationalisation of GST acted as a strong sentiment driver for the domestic market. He further highlighted that the recent conclusion of the summit between the United States and Russia, which ended without aggravating geopolitical tensions, brought a sense of relief to investors who had been cautious. Additionally, he noted that the automobile sector stood out, benefiting significantly from expectations of tax reforms. Nair also projected that in the second half of FY26, consumption-driven sectors are likely to witness growth momentum fueled by a revival in consumer demand.
Among individual stocks, Maruti Suzuki emerged as the top performer with a sharp rally of 8.94%, reflecting strong investor interest. It was followed by Bajaj Finance, which gained 5.02%, UltraTech Cement rising 3.71%, Bajaj Finserv adding 3.70%, and Mahindra & Mahindra climbing 3.54%. These strong advances helped reinforce the positive tone in the broader market. On the flip side, some stocks dragged the indices down, with ITC slipping 1.26%, Larsen & Toubro dropping 1.18%, Eternal declining 1.16%, Tech Mahindra losing 1.02%, and NTPC easing 0.91%.
Looking ahead, market experts believe that Nifty reclaiming its short-term moving average, specifically the 20-day exponential moving average (20-DEMA) around the 24,750 mark, will be critical for sustaining momentum. If it remains above this level, the index could advance further toward 25,250. Traders, however, are advised to keep their strategies centered around sectoral rotation, with particular focus on the automobile and consumption themes, which are likely to remain strong. At the same time, experts stress the importance of a stock-specific approach coupled with prudent risk management in order to navigate the evolving market landscape effectively.
