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Key gauges end with strong gains on Monday
Aug-18-2025

Indian equity benchmarks staged a strong rally and ended the day with strong gains on Monday on heavy buying in auto and consumer durables stocks, buoyed by plans for big bang reforms in the GST regime by Diwali. Global rating agency S&P upgrading India's sovereign credit rating also boosted the sentiment.

Some of the important factors in today’s trade:

India Exim Bank forecasts merchandise exports to reach $108.1 billion in Q2 FY26: Export-Import Bank of India (India Exim Bank) forecasts total merchandise exports to amount to $108.1 billion, a growth of 4.5 per cent, while non-oil exports are forecast to amount $92.1 billion, with a growth of 5.2 per cent, during July-September of FY26 (Q2 of FY26). 

India's merchandise exports rise 7.29% in July: The commerce ministry in its latest data has showed that India's merchandise exports rebounded by 7.29 per cent to $37.24 billion in July 2025 as compared to $34.71 billion in July 2024. Imports increased by 8.6 per cent year-on-year to $64.59 billion in July 2025 as compared to $ 59.48 billion in July 2024. 

Forex reserves surge $4.74 billion to $693.62 billion: Some support also came as RBI’s data showed that India's forex reserves surged by $4.74 billion to $693.62 billion for the week ended August 8, 2025. 

Rupee rises against U.S. dollar: Indian rupee appreciated against the U.S. dollar, supported by strong domestic equities. Rupee traded on the positive territory on the GST reforms that Prime Minister Narendra Modi recommended in his August 15 address to the nation.

India facing tough choices in responding to steep Trump tariffs: The Global Trade Research Initiative (GTRI) has said that India is facing tough choices in responding to steep US tariffs - from negotiating or retaliating to diversifying export markets or offering trade concessions like ending Russian oil imports - but each option carries its own mix of benefits and risks.

Global front: European markets were trading lower after the Trump-Putin summit ended without a breakthrough on halting the war in Ukraine. Asian markets settled mostly higher on Monday as investors reacted to ongoing U.S.-Russia talks on Ukraine and looked ahead to upcoming Federal Reserve Jerome Powell's Jackson Hole speech for clues on whether the U.S. central bank will cut interest rates next month. 

Finally, the BSE Sensex rose 676.09 points or 0.84% to 81,273.75 and the CNX Nifty was up by 245.65 points or 1.00% to 24,876.95. 

The BSE Sensex touched high and low of 81,765.77 and 81,202.42 respectively. There were 20 stocks advancing against 10 stocks declining on the index.  

The broader indices ended in green; the BSE Mid cap index rose 1.00%, while Small cap index was up by 1.39%.

The top gaining sectoral indices on the BSE were Auto up by 4.26%, Consumer Durables up by 3.08%, Consumer Discretionary up by 2.74%, Realty up by 2.19% and Basic Materials up by 1.96%, while IT down by 0.43%, Power down by 0.28% and TECK down by 0.07% were the top losing indices on BSE.

The top gainers on the Sensex were Maruti Suzuki up by 8.94%, Bajaj Finance up by 5.02%, Ultratech Cement up by 3.71%, Bajaj Finserv up by 3.70% and Mahindra & Mahindra up by 3.54%. On the flip side, ITC down by 1.26%, Larsen & Toubro down by 1.18%, Eternal down by 1.16%, Tech Mahindra down by 1.02% and NTPC down by 0.91% were the top losers.

Meanwhile, the Finance Ministry has said that the sovereign rating upgrade by S&P on August 14 is a significant affirmation of India's economic trajectory and prudent fiscal management. It added this marks the country's first sovereign upgrade by S&P in 18 years, the previous one being in 2007 when India was elevated to investment grade at BBB-. In May 2024, the agency revised its outlook on India from 'Stable' to 'Positive'. 

The global rating agency S&P upgraded India's sovereign credit rating to 'BBB' with a stable outlook, citing robust economic growth, political commitment for fiscal consolidation and 'conducive' monetary policy to check inflation. As per S&P's India sovereign rating review published, the upgrade reflects a combination of key factors, including India's buoyant and dynamic economic growth, the government's sustained commitment to fiscal consolidation, improved quality of public spending, particularly on capex and infrastructure, and strong corporate, financial, and external balance sheets.

The ministry said credible inflation management and increasing policy predictability have also played a central role. Citing the rating agency, it said monetary policy reforms, particularly the adoption of an inflation-targeting regime, have anchored inflation expectations more effectively. It added S&P has also recognised that despite global headwinds and price shocks, India has demonstrated resilience by maintaining overall price stability. Monetary improvements, combined with the ongoing development of deep domestic capital markets, have created a more stable and supportive environment for the overall economic scenario.

The CNX Nifty traded in a range of 25,022.00 and 24,852.85. There were 38 stocks advancing against 12 stocks declining on the index.

The top gainers on Nifty were Maruti Suzuki up by 8.92%, Hero MotoCorp up by 5.99%, Nestle up by 5.23%, Bajaj Finance up by 5.06% and Bajaj Auto up by 4.61%. On the flip side, ITC down by 1.49%, Eternal down by 1.35%, Tech Mahindra down by 1.09%, Larsen & Toubro down by 1.01% and NTPC down by 0.90% were the top losers. 

European markets were trading lower; UK’s FTSE 100 decreased 7.28 points or 0.08% to 9,131.62, France’s CAC fell 58.45 points or 0.74% to 7,865.00 and Germany’s DAX lost 72.8 points or 0.3% to 24,286.50,

Asian markets settled mostly higher on Monday as investors reacted to ongoing US-Russia talks on Ukraine and looked ahead to Jerome Powell's Jackson Hole speech for clues on whether the Fed will cut interest rates next month. The Japanese market hit a new record high as a weaker yen boosted automakers' shares and ahead of inflation data due this week that could provide further guidance on whether the Bank of Japan will hike rates again this year. Market sentiments improved further after the Japanese government said the US is not pressuring the Bank of Japan for rate hikes. Chinese shares jumped on strong institutional and retail buying on expectations that a swift resolution to the Russia-Ukraine conflict will help remove US scrutiny of Beijing's purchases of Russian oil. However, Seoul shares fell sharply amid uncertainties over Trump's potential tariff measures on semiconductors. 

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

3,728.03

31.26

0.84

Hang Seng

25,176.85

-93.22

- 0.37

Jakarta Composite

--

--

--

KLSE Composite

1,584.96

8.62

0.55

Nikkei 225

43,764.00

385.69

0.88

Straits Times

4,187.38

-43.15

-1.03

KOSPI Composite

3,177.28

-48.38

-1.52

Taiwan Weighted

24,482.52

148.04

0.60
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