For the last few weeks, the way the stock market was continuously diving, it was a minor break. After about 6 weeks, a week came when the stock market closed on the positive note. Also, such a land was prepared for the coming days. So that the stock market remains a good rise. On August 15 last week, PM Narendra Modi discussed the GST Reform 2025 from the ramparts of the Red Fort and indicated that only two slabs of GST in the country would be 5 and 18 percent.
After that, some positive things came to light in the meeting of US President Donald Trump and Russia President Vladimir Putin in Alaska and indicated to be held in the next meeting masks. Which proves that the doors of peace are not closed. These three nations of the world Kadis of the world tried to bring new life in all the stock markets of the world including India.
If we talk about India, the Sensex saw a jump of 1,100 points and investors earned about 9 lakh crore rupees in just 35 minutes. By the way, apart from these three national heads, some other things are also a big hand behind the boom in the stock market. S&P Global made India’s rating positive. Which worked to boost the stock market. On the other hand, Asian markets also saw a good rise. The effect of which was seen in India’s stock market.
On the other hand, there is a good rise in the rupee. The dollar index has lost 0.62 percent in the last 5 business days. The stock market has also increased due to all these reasons. Let us also tell you what kind of figures are being seen in the stock market. Also, apart from these Tridevas, we discuss the major reasons for the sharp boom in the stock market…
Bumper bounce in the stock market
On Monday, the Sensex rose by more than 1,100 points and the Nifty was around 25,000 levels. After the meeting between the US and Russian presidents, the concern over the Russian oil supply and optimism over the proposed GST reform of the Government of India gained momentum. The BSE Sensex rose 1,168.11 points or 1.44 per cent in the morning to reach 81,765.77 points. The NSE Nifty was seen at 390.7 points or 1.58 per cent to 25,022 points. Among the companies included in the Sensex, Maruti’s stock saw a rise of more than 8 per cent.
On the other hand, Bajaj Finance, UltraTech Cement, Mahindra & Mahindra, Trent and Bajaj Finserv were also in the lead. On the other hand, shares of Larsen & Toubro, Sun Pharma, HCL Technologies and Infosys were in disadvantage. The demand for shares of motor vehicle companies was in full swing, Hero MotoCorp’s stock rose by about 9 percent. The BSE Auto Index rose 4.57 per cent to 56,404.06.
Auto and consumer shares were the fastest, which rose 3.4 per cent and 1.8 per cent respectively. The mid-cap and small-cap index saw an increase of about 1 percent. Financial shares gained 1.6 per cent with the improvement in S&P rating of Laders like HDFC Bank and State Bank of India. HDFC Bank recorded a rise of 1.4 percent and SBI 0.6 percent.
Major reasons for stock market boom
Trump-point talks
After meeting Russian President Vladimir Putin in Alaska on Friday, US President Donald Trump gave priority to the peace agreement rather than a ceasefire in Ukraine. On which there was a sign of consent from Moscow. Trump is about to discuss a possible security guarantee for Kiev with Ukrainian President Volodimir Zelansky and European leaders on Monday, although concrete proposals are not yet clear.
Oil prices declined after Washington launched a new restriction on Russian exports after the trump-point talks. Trump also said that he does not need to consider counter-charges on countries like India and China that continue to buy Russian oil, although he can reconsider the issue “in two or three weeks”. This comment reduced the possibility of immediate disruption in the supply.
Announcement of GST Reform
In order to promote development amidst trade tension with the US, the Government of India’s plan to carry forward the broad tax reform of the Government of India also increased the excitement in the stock market. Reuters quoted a government formula as saying that India has proposed to reduce GST on small cars from 28 percent to 18 percent. With this step, vehicle makers sales are expected to increase, including the country’s largest car manufacturer Maruti Suzuki.
The report said that the central government is also considering reducing GST to 18 per cent on small petrol and diesel cars, as well as reduce health and life insurance premiums from the current 18 per cent to 5 per cent or zero. If these reforms are approved, then it is likely to be implemented by Diwali in October, which is India’s largest shopping season.
Upgrade rating of S&P
S&P Global Ratings on Thursday increased India’s Longater Sovereign Credit rating from “BBB-” to “BBB”, and kept the outlook stable, which is the country’s first upgrade in 18 years. Due to this move, the seled on 10 -year government bonds reduced by about 10 basis points to 6.4 percent.
The agency said that the main reason for upgrading the country’s rating is India’s strong economic growth, better monetary policy reliability and continuous fiscal solidity. This came after S&P’s decision to positive India’s outlook in May. India’s real GDP increased an average of 8.8 per cent on an average between FY 2022 and 2024, the fastest in Asia-Pacific.
It is estimated to increase at a rate of 6.8 per cent annually in the next three years. S&P said that this pace is helping to reduce the government’s debt burden despite the widespread fiscal deficit. The agency estimates that India’s debt -GDP ratio will decrease from 83 per cent of FY 2025 to 78 per cent by FY 2029.
S&P also said that the American tariff is likely to have a limited impact, given the dependence on domestic demand rather than India’s trade. Fitch has given India a “BBB-” rating since 2006, while Moody’s has given it a “Baa3” rating since 2020.
Asian markets boom
On Monday, the Asian stock markets recorded a rise, while the possibility of disruption of supply from Russia led to a decline in oil prices. Japan and Taiwan’s benchmark index reached a record high, while Chinese Bluechips reached their strongest level in 10 months. The Asia-Pacific shares outside Japan decreased slightly after reaching the four-year high of the MSCI index last week. Chinese bluechips increased by 1 per cent, causing the quarterly profit to about 8 per cent.
Japan’s Nikkei rose 0.9 per cent to another record, supporting hopes of improving global monetary conditions. The markets are estimating 85 per cent of the fourth point cut in the Federal Reserve meeting of 17 September, as well as the traders expecting more relaxation by the end of the year.
The main attraction of this week will be at the Jackson Hall Seminar of the Federal Reserve to be held from August 21 to 23, where the chairman can put the outline of the Economic Outlook and Policy Route by Jerome Powell. In Europe, there was a slight increase in futures trading, with an increase of 0.2 per cent in Euro Stocks 50 and FTSE futures trading and 0.1 per cent in Germany’s DAX futures trading.
Rupee rises
The main reasons for the boom in the stock market also increased the rupee. The rupee gained 20 paise in early trade on Monday to reach 87.39 against the US dollar amid positive trend in domestic stock markets. Forex traders said that market participants are likely to be vigilant amid uncertainty on the issue of trade fee between India and the US.
In the Interbank Foreign Currency Exchange Market, the rupee opened at 87.46 against the US dollar. Then reached 87.39 per dollar, which shows a growth of 20 paise from the previous closed price. The rupee closed at 87.59 against the US dollar on Thursday. On the occasion of Independence Day, currency and stock markets were closed on Friday.
Investors benefit about 9 lakh crores
Investors have got a big relief in the second half of August. The start of the second half was very positive, due to which investors have benefited about 9 lakh crore rupees in just 35 minutes. When the stock market was closed on Thursday, the market cap of BSE was Rs 4,44,78,611.27 crore, which reached Rs 4,53,47,885.19 crore during the trading session on Monday. This means that on Monday, the market cap of the main index of the stock market saw an increase of about Rs 9 lakh crore. By the way, at around 1 pm, the Sensex is trading up a rise of around 800 in -apes. Also, the market cap of BSE came to Rs 4,51,38,078.93 crore.