Sensex | Nifty 50 | Stock Market Today: Sensex soars over 1,000 points, Nifty surges to 24,953 amid proposed GST reforms

All the major sectoral indices were trading in green. The Nifty Auto rose 4.44 per cent, Nifty Metal gained 1.35 per cent and Nifty Consumer Durables climbed 3.09 per cent.

Among the NSE companies that gained the most included Hero Motocorp Ltd (7.41 per cent), Maruti Suzuki India (7.30 per cent), Bajaj Finance (6.60 per cent), Nestle India (6.49 per cent) and Mahindra & Mahindra (4.59 per cent)

“There are strong tailwinds for the market with potential to take it higher. Declarations by the prime minister on the next major reforms in GST by Diwali, is a big positive. The expectation is that most of the goods and services will be in the 5% and 18% tax slabs. Sectors like autos and cement which are presently in the 28% tax slabs are expected to benefit,” said VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.

In his Independence Day speech, Prime Minister Narendra Modi proposed a recast of the Goods and Services Tax (GST), with two-slab structure – 5 per cent and 12 per cent. The proposed lower tax structure, expected to come into effect by October, will ease the burden on consumers and small businesses.

Buying in the market was seen after S&P Global Ratings, last week, raised India’s long-term sovereign credit rating to ‘BBB’ from ‘BBB-‘, with a stable outlook. This upgrade comes 18 years after S&P Global had last raised its India assessment in January 2007 to BBB- in the rating scale.

“The landmark ratings upgrade after 18 years signals enhanced investor confidence and could trigger sustained foreign inflows into Indian markets,” said Devarsh Vakil, Head of Prime Research at HDFC Securities.

Geopolitical developments, particularly potential ceasefire talks between Russia and Ukraine following the Trump-Putin engagement, could reduce global risk-off sentiment.

“The outcome of today’s meeting at the White House for finding a solution to the Russia-Ukraine conflict will be keenly watched by the market,” said Vijayakumar.