Indian markets rally as Sensex jumps over 1,100 points, Nifty reclaims 25,000
Prime Minister Narendra Modi announced that the government will roll out next-generation GST reforms by Diwali 2025, aiming to rationalise tax rates in a meaningful way. Adding to the optimism, S&P Global Ratings upgraded India's sovereign rating from 'BBB-' to 'BBB' with a stable outlook, the first such upgrade in 18 years.
The BSE Sensex surged 1,142 points, or 1.42%, to trade at 81,740, while the Nifty50 crossed the 25,000 mark for the first time since July 25, rising 388 points, or 1.58%, to 25,019.
Autos and consumer shares led the rally. Hero MotoCorp gained nearly 8%, while Maruti Suzuki and TVS Motor advanced 6% and 5% respectively, pushing the Nifty Auto index higher by over 4%. The Nifty Consumer Durables index also added more than 3%.
Financial stocks were another big driver. The Nifty Bank rose 1.18% and the Nifty Financial Services index climbed 1.67%, after S&P also upgraded the ratings of several leading banks and NBFCs, including SBI, ICICI Bank, HDFC Bank, Axis Bank, Kotak Mahindra Bank, Bajaj Finance, and Tata Capital.
Broader markets moved in tandem, with the Nifty MidCap and SmallCap indices gaining around 1% each.
On the flip side, IT and pharma stocks were under pressure. HCL Tech, Infosys, Wipro, Dr. Reddy's Labs, Sun Pharma, ONGC, ITC, and L&T were among the top laggards.
Meanwhile, market volatility also picked up. The India VIX, often seen as a 'fear gauge', rose over 4%, reflecting higher short-term uncertainty.
IPOs
The basis of allotment for Regaal Resources' IPO will be finalised today.
In the SME space, Studio LSD opened for public subscription.
ANB Metal Cast and Medistep Healthcare debuted on the NSE SME platform, while Star Imaging and Path Lab listed on the BSE SME platform.
Global cues also supported the rally. Reports of easing concerns over oil supplies following recent US–Russia discussions boosted sentiment, particularly for oil-importing economies like India.
Overall, investors welcomed the sovereign rating upgrade and the government's reform roadmap, pushing Indian equities higher across sectors.
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