Indian equity markets closed on a strong note on Monday, lifted by heavy buying in auto, banking and consumer durable stocks, as investor sentiment turned positive on the back of upcoming Goods and Services Tax (GST) reforms.
The Sensex ended at 81,273.75, gaining 676.09 points or 0.84 per cent. The 30-share index opened with a sharp gap-up at 81,315.79 against the previous close of 80,597.66 and touched an intraday high of 81,765.77. The Nifty 50 settled at 24,876.95, higher by 245.65 points or one per cent.
Vinod Nair, Head of Research at Geojit Financial Services, said that the proposed rationalisation of GST has acted as a major sentiment booster for domestic equities. He added that the recent conclusion of the US–Russia summit without any escalation in geopolitical tensions also helped ease investor concerns. According to him, the automobile sector stood out as a key beneficiary of the anticipated tax reforms, and consumption-led sectors are likely to gather momentum in the second half of FY26 with a revival in demand.
Maruti Suzuki, Bajaj Finance, Ultratech Cement, Adani Ports, Bajaj Finserv, Mahindra & Mahindra, Hindustan Unilever, Trent, Asian Paints, Tata Steel, Tata Motors, Axis Bank and Bharti Airtel were among the top gainers on the Sensex, while ITC, Tech Mahindra, L&T, NTPC and Infosys ended lower.
The sectoral indices reflected the overall optimism. Nifty Auto led the rally, rising by 1,008 points or 4.18 per cent. Nifty Bank advanced 393 points or 0.71 per cent, Nifty Financial Services climbed 275 points or 1.05 per cent, and Nifty FMCG gained 647 points or 1.19 per cent. Nifty IT, however, closed in the red.
The broader markets also posted gains. Nifty Next 50 added 888 points or 1.34 per cent, Nifty 100 gained 266 points or 1.05 per cent, Nifty Midcap 100 rose 608 points or 1.08 per cent, and Nifty Smallcap 100 ended 242 points or 1.38 per cent higher.
The rupee appreciated by 24 paise to close at 87.31 against the US dollar. Jateen Trivedi, Vice President of Research at LKP Securities, said that the GST reform move comes as policymakers attempt to cushion the economy amid lingering pressure on exports due to US tariff issues. He noted that the rupee is expected to trade in the range of 87.00 to 87.75 in the near term.
-IANS