Stock Market Today: Nifty, Sensex Shrug Off Trump Tariff Threats; GST Cuts And S&P Upgrade Power Rally

Indian stock markets kicked off the week on a strong note as investors cheered a double dose of good news: S&P Global’s sovereign rating upgrade for India and the government’s decision to cut Goods and Services Tax (GST) on key consumption items.

Despite looming US tariff threats, market sentiment remained upbeat. The benchmark Nifty 50 opened higher at 24,938.20, up 306.90 points or 1.25 per cent, while the BSE Sensex surged 727.24 points, or 0.90 per cent, to begin trading at 81,324.90.

The momentum continued through the day, with both benchmarks holding strong gains. The Sensex eventually closed at 81,273.75, up 676.09 points or 0.84 per cent, while the Nifty ended at 24,876.95, higher by 245.65 points or 1 per cent.

US Tariff Overhang Lingers

Even as the domestic market celebrated positive triggers, clouds from Washington lingered in the backdrop. US President Donald Trump has ruled out further secondary tariffs on nations trading with Russia, but the 25 per cent punitive duties on Indian exports to the US remain scheduled for August 27.

Analysts said that any breakthrough on US-Russia relations during the week could help ease this overhang, but for now, investors appeared willing to look past the risk.

Sectoral Strength Led by Autos and Consumption

The GST cuts provided a significant boost to domestic-oriented sectors, particularly autos, consumer durables, FMCG, and financials. The Nifty Auto index jumped 4.18 per cent, making it the top sectoral gainer of the day, followed by Nifty Consumer Durables, which rose 3.38 per cent.

Realty stocks also benefited from expectations of a continued infrastructure push, with the Nifty Realty index climbing 2.17 per cent.

On the other hand, IT and pharma stocks faced selling pressure. The Nifty IT index slipped 0.57 per cent, dragged down by Infosys, TCS, Tech Mahindra, and HCL Tech. The Nifty Pharma index edged down 0.05 per cent.

Also Read: India Recommends Import Tariffs For Three Years On Steel Products

Top Gainers and Losers

Among frontline stocks, Maruti Suzuki emerged as the star performer, soaring 8.94 per cent to Rs 14,075.30, as GST cuts are expected to boost small car sales.

Other notable gainers included Bajaj Finance (+5.02 per cent), UltraTech Cement (+3.71 per cent), Bajaj Finserv (+3.70 per cent), and M&M (+3.54 per cent).

FMCG major Hindustan Unilever gained 3.46 per cent, while retail player Trent rose 2.90 per cent.

On the losing side, ITC slipped 1.26 per cent, L&T declined 1.18 per cent, Tech Mahindra shed 1.02 per cent, and Infosys fell 0.88 per cent. NTPC and Sun Pharma also ended in the red.

Market Breadth Remains Positive

The overall market breadth reflected strong participation. Out of 3,147 stocks traded on the NSE, 2,014 advanced, while 1,047 declined and 86 remained unchanged. A total of 86 stocks hit fresh 52-week highs, while 71 touched new 52-week lows.

Moreover, 125 stocks closed in the upper circuit, compared to 83 in the lower circuit, highlighting the optimism among retail investors.