Dalal Street finds a fresh tailwind as GST hopes and global calm lift benchmarks higher

Domestic equity benchmarks surged on Monday, marking their third consecutive day of gains, as optimism over potential GST reforms and easing concerns on Russian oil supplies lifted investor sentiment.

The Nifty closed above the 24,850 mark, supported by strong buying in autos, banks and consumer durables. Prime Minister Narendra Modi, in his Independence Day address, announced that the government is planning to roll out generational GST reforms before Diwali, a move seen as a major sentiment booster for the market.

Adding to the cheer, the recent U.S.-Russia meeting concluded without fresh tensions, helping calm fears over disruptions in global oil supplies.

Sectorally, automobiles led the rally as investors bet on the segment benefiting from tax rationalisation. Analysts noted that consumption-led sectors could also gather momentum in the second half of FY26 on the back of demand revival.

The upbeat mood was further bolstered by India's recent credit rating upgrade, which reinforced confidence in the country?s economic prospects.

The S&P BSE Sensex jumped 676.09 points or 0.84% to 81,273.75. The Nifty 50 index surged 245.65 points or 1% to 24,876.95. The 50-unit index is up 1.59% in three days.

Maruti Suzuki India (up 8.9%), Bajaj Finance (up 5%) and Mahindra & Mahindra (up 3.4%) boosted the Nifty higher today.

In the broader market, the S&P BSE Mid-Cap index rose 1% and the S&P BSE Small-Cap index added 1.39%.

The market breadth was strong. On the BSE, 2,562 shares rose and 1,627 shares fell. A total of 190 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, shed 0.12% to 12.34.

Numbers to Track:

The yield on India's 10-year benchmark federal paper rose 1.19% to 6.480 from the previous close of 6.402.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 87.3600 compared with its close of 87.5900 during the previous trading session.

MCX Gold futures for 3 October 2025 settlement was flat Rs 99,840.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.15% to 98.00.

The United States 10-year bond yield fell 0.76% to 4.294.

In the commodities market, Brent crude for October 2025 settlement added 30 cents or 0.46% to $66.15 a barrel.

Global Market:

European stocks traded lower on Monday as traders awaited a meeting between regional leaders and U.S. President Donald Trump to discuss Ukraine.

Asian indices ended mixed on Monday after the U.S.-Russia summit concluded without a ceasefire.

As per media reports, U.S. President Donald Trump now seemed more aligned with Moscow on seeking a peace deal with Ukraine instead of a ceasefire first, after meeting Russian President Vladimir Putin in Alaska on Friday.

The reports further state that Trump will meet Ukrainian President Volodymyr Zelenskiy and European leaders later on Monday to discuss the next steps, though actual proposals are vague as yet.

US stocks were mixed on Friday as Wall Street tempered its rate-cut hopes amid economic data this week that showed higher-than-expected wholesale inflation and a rise in July retail sales.

The Dow rose 0.08%, or 34.86 points, to 44,946.12. The S&P 500 slipped 0.29%, or 18.74 points, to 6,449.80; and the tech-heavy Nasdaq dipped 0.4%, or 87.693 points, to 21,622.977.

The US Census Bureau data released Friday morning showed retail sales rose 0.5% in July from the prior month.

Meanwhile, US consumer sentiment deteriorated in August, falling for the first time in four months as inflation expectations jumped in the longer term.

The US Fed will continue to be in focus this week as central bank members travel to Jackson Hole, Wyoming, for the annual economic policy symposium.

Buzzing Index:

The Nifty Auto index rallied 4.18% to 25,127.20 today, fueled by growing speculation that the government may slash GST rates on automobiles.

Maruti Suzuki (up 8.92%), Ashok Leyland (up 8.15%), TVS Motor (up 6.39%), Hero MotoCorp (up 5.99%), Bajaj Auto (up 4.61%), MRF (up 3.63%), Mahindra & Mahindra (up 3.48%), Eicher Motors (up 2.62%), Bosch (up 2.01%), Tata Motors (up 1.70%), Samvardhana Motherson International (up 1.11%) surged.

Media reports suggest the government is considering reducing the 28% tax slab to 18% while scrapping the compensation cess. Though such a move could dent near-term revenues, analysts believe it would provide a strong boost to auto demand, lift consumption, and create jobs.

Stocks in Spotlight:

Vodafone Idea added 5.04%. The company?s consolidated basis, net loss stood at Rs 6,608.1 crore in Q1 FY26 higher than Rs 6,432.1 crore in Q1 FY25. Revenue from operations rose 4.9% YoY to Rs 11,022.5 crore from Rs 10,508.3 crore in Q1 FY25. Operationally, ARPU improved 15% YoY to Rs 177 from Rs 154 in Q1 FY25, driven by tariff revisions and customer upgrades. The 4G/5G subscriber base rose to 127.4 million versus 126.7 million last year.

Marksans Pharma rallied 3.25% after its UK arm Relonchem received marketing approval from UK regulators to sell Metformin Hydrochloride prolonged-release tablets in 500 mg, 750 mg and 1000 mg strengths, a frontline drug for type 2 diabetes.

JK Cement climbed 4.32%. The company said it will set up a new greenfield cement line of 7 million tonnes per annum (MnTPA). The project includes a clinkerisation unit of 4 MnTPA and a cement grinding unit of 3 MnTPA at Jaisalmer, Rajasthan. Additionally, two split grinding units of 2 MnTPA each will be established in Rajasthan and Punjab. The total investment outlay for the expansion is pegged at Rs 4,805 crore.

SEPC surged 3.85%. The company?s consolidated net profit surged 104.8% YoY to Rs 16.55 crore in Q1 FY26, compared to Rs 8.08 crore in the year-ago quarter. Revenue from operations rose 15% YoY to Rs 202.28 crore from Rs 175.82 crore in Q1 FY25.

Signpost India surged 9.26% after the company reported a 36.1% increase in consolidated net profit to Rs 15.27 crore on 37.01% jump in revenue from operations to Rs 137.64 crore in Q1 FY26 compared with Q1 FY25.

EMS rose 1.21% after the company announced that it has received a letter of acceptance (LoA) from UP Jal Nigam (Urban) for a project worth approximately Rs 104.05 crore.

Electronics Mart India surged 7.74% after the company announced the commencement of operations of a new multi-brand store under the 'Bajaj Electronics' brand.

KEC International surged 7.38% after the company announced that it has secured new orders worth Rs 1,402 crore across its key business verticals.

Zaggle Prepaid Ocean Services rallied 11.41% after the company?s standalone net profit surged 54.8% to Rs 25.88 crore on a 31.4% increase in revenue from operations to Rs 331.49 crore in Q1 FY26 over Q1 FY25.

Lemon Tree Hotels jumped 5.30% after its material subsidiary, Fleur Hotels, has received a letter of award (LoA) from the Delhi Development Authority (DDA) for the licence rights to a prime land parcel in Nehru Place, New Delhi.

Brahmaputra Infrastructure hit an upper limit of 5% after its consolidated net profit soared 121.82% to Rs 15.04 crore in Q1 FY26 as against Rs 6.78 crore posted in Q1 FY25. Total income from operations jumped 16.07% year on year to Rs 92.14 crore in the quarter ended 30 June 2025.

Powered by Capital Market - Live News