Stock market GST: Investors add Rs 63,68,43,60,00,000 in 30 mins as Sensex rises 1150 pts

Stock market, GST reforms: Indian investors went richer by over Rs 6,36,184.36 crore during the first 30 mins of trade at Dalal Street on Monday. The market capitalization of all BSE-listed companies companies jumped to Rs 4,52,13,816.70 crore on Monday, compared to its close at Rs 4,45,77,632.34 on Thursday, thanks to a slew of positive domestic and global cues.

GST reforms announced by the Prime Minister Narendra Modi on Friday, August 15 as a mega 'Diwali Gift' pumped the consumption-led counters. Along with this, S&P Global upgraded India's rating after 18 years, adding to the optimism. Besides this, the benign tone of the US President Donald Trump also pushed the local equities.

Optimism is being fuelled by expectations of GST rationalisation into two slabs in the upcoming council meeting, alongside global cues from the Trump-Putin dialogue and upcoming FOMC minutes on August 20 and Jerome Powell’s Jackson Hole speech on August 22, said said Prashanth Tapse, Senior VP (Research), Mehta Equities.

The positive news flow pushed the benchmark indices higher as BSE Sensex surged more than 1,168 points, or 1.45 per cent to 81,765.77 on Monday. Similarly, Nifty50 index reclaimed the 25,000-market. The NSE's barometer zoomed 390.70 points, or 1.58 per cent to hit 25,022 in the early trade.

Broader markets also rose in tandem. BSE midcap index zoomed more than 1.5 per cent, while the BSE Smallcap index advanced over 1.33 per cent in the early trade. However, fear gauge India VIX spiked nearly 9 per cent 13.47-level, only to ease down partially. All the sectors rose in the early trade.

There are strong tailwinds such as GST rationalization for the market with potential to take it higher. S&P 500 upgrading India’s sovereign credit rating is another major positive. But the market ignored this announcement since the negative news flows are also strong, said VK Vijayakumar, Chief Investment Strategist, Geojit Investments.

"India-US trade talks are unlikely to happen before August 27 deadline. The 'Trump Sword' of 50 per cent tariff dangling on India will restrain the market enthusiasm which can be triggered by the positive news mentioned earlier. The outcome of today’s meeting at the White House for finding a solution to the Russia-Ukraine conflict will be keenly watched by the market," he added.

On a sectoral front Nifty Auto index soared more than 4.5 per cent, while Nifty Consumer Durables and Nifty Financial Services index soared more than 3 per cent each. Nifty Realty index also was up nearly 3 per cent. Nifty Bank (private and PSUs both) and metal indices were other key gainers.

On a stock specific basis, Hero MotoCorp led the gainers in the Nifty50 pack, surging 8 per cent. Bajaj Finance gained more than 6 per cent. Mahindra & Mahindra, Bajaj Finserv, Maruti Suzuki, Trent, Bajaj Auto and UltraTech Cement were other key gainers, rising 4-5 per cent each. Among the laggards, L&T and Sun Pharma shared half-to-one per cent each.

In the broader markets, Fusion Finance surged 12 per cent, while Zaggle Prepaid Ocean Services jumped over 10 per cent. Ashok Leyland, Aditya Vision, Vodafone Idea, Hyundai Motor India, Amber Enterprises, Gabriel India and PG Electroplast gained 8-10 per cent each. On the contrary, Ethos tanked 8 per cent, while Godfrey Phillips tanked 5 per cent at open.

Advance decline ratio was heavily inclined in favour of bulls as 2,564 stock surged on BSE, while 1013 stock were trading lower. 177 stocks remained unchanged in the early trade. A total of 377 stock hit circuit in the early trade, of which 206 stock were locked in upper circuit, while 171 stocks traded at lower-circuit limit.