Bulls Back in Action on D-Street: Sensex, Nifty Rise Over 1% Amid GST & S&P Boost

Indian equities kicked off the week on a bullish note, with the Sensex and Nifty surging over 1% at the opening bell on August 18. 

The BSE Sensex rose 900.30 points, or 1.12%, to 81,497.96, while the NSE Nifty climbed 300.20 points, or 1.22%, to 24,931.50. About 2,103 shares advanced, 599 declined, and 166 remained unchanged.

Opening Bell Today 
Top gainers on the Nifty included Hero MotoCorp, Maruti Suzuki, Bajaj Finance, HUL, and Bajaj Finserv, while HCL Technologies, L&T, Dr Reddy’s Labs, and TCS were among the laggards.

Whats behind the rally in the market?
Experts cited multiple catalysts behind the strong opening.
"The Prime Minister’s recent announcement of potential GST reforms is a significant positive. These measures are expected to reduce the cost of essential goods, boosting consumer spending and corporate profitability. This will likely improve market sentiment and attract fresh investment," said Sugandha Sachdeva, Founder of SS WealthStreet.

Another key factor supporting the market was the easing tensions between Russia and Ukraine. "Recent talks have shown signs of progress, and while a rapid resolution is not guaranteed, the dialogue itself is a strong signal of a potential end to the conflict," Sachdeva added. She also noted the upcoming meeting between US President Trump and Ukraine President Zelensky as a potential trigger for further global risk-on sentiment.

Market expert Ajay Bagga highlighted two domestic positives: the PM’s planned GST cuts within 50 days and India’s sovereign rating upgrade by S&P Global, which also raised the ratings of 16 major Indian corporates, banks, and financial institutions. He added that investors should remain watchful of the US-EU-Ukraine meeting outcome and the US trade delegation’s postponed visit to India.
 

Key Levels to Watch Today
From a technical standpoint, the Nifty 50 has found crucial support after six consecutive weeks of decline. "A key support level has been established at 24,350. The benchmark is holding above its 100 DEMA at 24,590. A move above 24,800 (confluence of 20 and 50 DEMA) could trigger a rally towards 25,050. A breakout above this would signal further upward momentum," Sachdeva said.

However, adverse global developments could weigh on markets. "A negative outcome from the Trump-Zelensky meeting could breach the 24,350 support level, potentially dragging the Nifty toward 24,180. Investors will also closely watch US Fed Chair Powell’s speech at Jackson Hole for cues on monetary policy," she added.

Similarly, Sudeep Shah, Vice-President & Head of Technical and Derivatives Research at SBI Securities, cautioned that while last week’s Nifty bounce was encouraging, it was not decisive. "The index remains below its 20-day and 50-day moving averages, both sloping downward. Until the 24,750–24,800 zone is cleared decisively, pressure remains. A breakout above 24,800 could open the way to 25,100, while a breach of 24,450 might drag it toward 24,250 or even 24,100," Shah explained.
 
Analysts believe that the combination of domestic policy measures, rating upgrades, and easing geopolitical tensions have contributed to a risk-on sentiment, attracting investors to Indian equities at the start of the week.
Read More - Stock Market Next Week: Can Nifty Break Free Above 24,800? Details
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