Indian equity markets continued their upward trajectory on August 21, 2025, with the benchmark BSE Sensex closing at 82,000.71, marking a 0.17% increase. This extended the winning streak to its sixth consecutive day. The NSE Nifty also participated in the rally, climbing 0.13% to 25,083.75.
The sustained positive momentum is being fueled by anticipation surrounding Goods and Services Tax (GST) reforms and a recent credit rating upgrade for India by S&P Global Ratings, which have bolstered investor confidence. Analysts suggest that the proposed GST reform, expected around Diwali, could unleash a demand boost of approximately ₹2.4 lakh crore, potentially adding 50-70 basis points to India's GDP growth. The S&P upgrade, the first in nearly two decades, signifies improved investor confidence and potentially lower borrowing costs for the nation.
The market saw notable activity in specific stocks and sectors. Bajaj Finserv and ICICI Bank emerged as key market movers, reflecting strength in the financial services sector. The Healthcare and Realty sectors also experienced significant advancements, indicating broad-based optimism. Conversely, the Power and Commodities sectors faced declines, suggesting a rotation in market sentiment.
Investors are keenly observing the upcoming decision from the GST Council regarding a proposed two-slab tax structure, a move expected to simplify the indirect tax regime and potentially boost consumption. On the global front, Brent crude oil prices saw an uptick, rising 0.90% to $67.44 per barrel, influenced by a sharper-than-anticipated drop in U.S. crude inventories and ongoing geopolitical developments.
In terms of institutional flows, Foreign Institutional Investors (FIIs) offloaded equities worth ₹1,100.09 crore on August 20, 2025. In contrast, Domestic Institutional Investors (DIIs) remained active buyers, purchasing stocks worth ₹1,806.34 crore, providing a stabilizing influence on the market. This trend of DIIs stepping up their investments amidst FII outflows has been a notable feature in recent trading sessions.
The market's resilience, despite external factors like U.S. tariffs and global economic uncertainties, highlights a growing confidence in India's economic outlook. Over the past six days, the Sensex has gained approximately 2.14%, and the Nifty has climbed 2.4%, underscoring a period of sustained growth.