Indian stock markets opened the week on a strong note as benchmark indices Sensex and Nifty surged over 1% on Monday, supported by Prime Minister Narendra Modi’s announcement of next-generation GST reforms and a sovereign credit rating upgrade by S&P Global Ratings. Positive global cues, easing crude prices, and rupee strength further fueled investor optimism.

At around 10 AM, the Sensex rallied 1,082.98 points (1.34%) to 81,680.63, while the Nifty climbed 370.90 points (1.51%) to cross the 25,000 mark, trading at 25,002.20.

Auto, cement, and consumer discretionary stocks led the rally, with Maruti Suzuki, Mahindra & Mahindra, Bajaj Finance, Bajaj Finserv, UltraTech Cement, and Trent emerging as top gainers. Sectorally, autos surged 3.4% and consumer stocks rose 1.8%, while mid-cap and small-cap indices added about 1% each.

Key Drivers of the Market Rally:

GST Reform Push: PM Modi, in his Independence Day address, revealed that a draft of proposed GST changes has been circulated to states, aiming to implement reforms before Diwali. Analysts said rationalizing slabs, particularly moving more goods and services to the 5% and 18% brackets from 28%, could benefit sectors like autos, cement, and insurance.

S&P Credit Rating Upgrade: S&P Global Ratings upgraded India’s sovereign rating to ‘BBB’ from ‘BBB-’, the first upgrade since 2007. The agency cited India’s strong economic growth, policy credibility, and fiscal consolidation as key reasons. Experts noted that the twin boost of GST reforms and the S&P upgrade reinforces investor confidence.

Global Cues: Asian markets, including Japan’s Nikkei, Shanghai Composite, and Hong Kong’s Hang Seng, traded higher. U.S. futures also pointed to a positive opening.

Crude Prices & Rupee Strength: Brent crude slipped marginally to USD 65.82 per barrel, easing inflation concerns. Meanwhile, the rupee strengthened 20 paise to 87.39 per dollar, supported by strong domestic equities.

Trade Relief from U.S.: Market mood improved after U.S. President Donald Trump hinted that Washington may not impose secondary tariffs on nations buying Russian crude, reducing risks for India’s energy imports.

Technical View:
According to Anand James, Chief Market Strategist at Geojit Financial Services, Nifty’s upmove indicates broad market strength. “We continue to look at 24,850–25,200 as near-term objectives. While 24,850 could act as resistance, the upside trend remains intact as long as volatility holds above 24,650,” he said.

Overall, the combination of domestic policy momentum, rating upgrade, supportive global cues, and easing macro headwinds has reignited bullish sentiment in the Indian stock market.