Mon Aug 18 04:38:05 UTC 2025: **Rewritten News Article:**

**Indian Stock Markets Soar on GST Reform Plans and Credit Rating Upgrade**

**Mumbai, August 18, 2025** – Indian stock markets experienced a significant surge in early trading today, driven by optimism surrounding forthcoming Goods and Services Tax (GST) reforms and an upgrade to India’s sovereign credit rating by Standard & Poor’s (S&P).

The benchmark BSE Sensex jumped 1,021.93 points to reach 81,619.59, while the NSE Nifty soared 322.2 points to 24,953.50. Auto, consumer discretionary, and consumer durables stocks led the rally. Top gainers on the Sensex included Maruti, Bajaj Finance, Mahindra & Mahindra, UltraTech Cement, Trent, and Bajaj Finserv.

Prime Minister Narendra Modi announced on Sunday that the draft for the next generation of GST reforms has been circulated among states, with the aim of implementation before Diwali. The proposed reforms are expected to simplify the tax structure, primarily utilizing the 5% and 18% tax slabs. Sectors currently burdened with the 28% slab, such as autos and cement, are predicted to benefit significantly.

“There are strong tailwinds for the market with the potential to take it higher,” stated VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited. “The Prime Minister’s declarations on GST reforms by Diwali are a big positive, as is S&P upgrading India’s sovereign credit rating.”

Vijayakumar anticipates a positive response from auto manufacturers like TVS Motors, Hero, Eicher, M&M, and Maruti. Insurance companies are also expected to benefit from the GST revision.

Asian markets showed mixed performance, with Japan’s Nikkei 225, Shanghai’s SSE Composite, and Hong Kong’s Hang Seng trading positively, while South Korea’s Kospi edged lower. U.S. markets closed mostly lower on Friday.

Brent crude oil dipped slightly to $65.82 a barrel.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,926.76 crore on Thursday.

Prior to the Independence Day holiday on Friday, the Sensex closed up 57.75 points (0.07%) at 80,597.66, and the Nifty rose by 11.95 points (0.05%) to 24,631.30 on Thursday.

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