Stock markets rose sharply on Monday (August 18, 2025), with Sensex closing higher by 676 points and Nifty climbing 1% on heavy buying in auto and consumer durables stocks, buoyed by plans for big bang reforms in the GST regime by Diwali.

The 30-share BSE Sensex jumped 676.09 points or 0.84% to settle at 81,273.75. During the day, it zoomed by 1,168.11 points or 1.44% to 81,765.77.

The 50-share NSE Nifty climbed 245.65 points or 1% to end at 24,876.95. Intra-day, it surged 390.7 points or 1.58% to 25,022.

Global rating agency S&P upgrading India’s sovereign credit rating also boosted the sentiment, analysts said.

Among Sensex firms, Maruti zoomed the most by 8.94%. Bajaj Finance, UltraTech Cement, Bajaj Finserv, Mahindra&Mahindra, Hindustan Unilever and Trent were among other major gainers from the pack.

However, ITC, Eternal, Tech Mahindra and Larsen&Toubro declined.

Auto stocks were in high demand, with Hyundai Motor India jumping 8.45%. The BSE auto index jumped 4.26% to 56,233.33.

The Centre has proposed a 2-tier GST structure of 5% and 18%, besides a 40% special rate on a select few items to the GoM on GST rate rationalisation.

The proposal, which entails removing the current 12 and 28% tax slabs, will be discussed at the two-day meeting of the state ministerial panel on August 20 and 21 in the national capital, according to sources.

Prime Minister Narendra Modi had announced the proposal to reform the GST law in his Independence Day speech on August 15 from the ramparts of the Red Fort.

In Asian markets, Japan’s Nikkei 225 index and Shanghai’s SSE Composite index settled in positive territory while South Korea’s Kospi and Hong Kong’s Hang Seng ended lower.

European markets were trading in negative territory.

The U.S. markets ended mostly lower on Friday.

Global oil benchmark Brent crude climbed 0.62% up to $66.25 a barrel.

Foreign Institutional Investors (FIIs) offloaded equities worth ₹1,926.76 crore on Thursday, according to exchange data.

On Thursday, the Sensex climbed 57.75 points or 0.07% to settle at 80,597.66. The Nifty rose by 11.95 points or 0.05% to 24,631.30.

Equity markets were closed on Friday for Independence Day.