Indian equity markets witnessed a significant upswing on August 19, 2025, with both the BSE Sensex and NSE Nifty 50 closing higher. The surge was primarily driven by positive sentiment surrounding anticipated Goods and Services Tax (GST) reforms and a robust economic outlook for the nation.
The BSE Sensex recorded a substantial gain, closing at 81,644.39, an increase of 370.64 points (0.46%). The NSE Nifty 50 climbed approximately 0.42%, settling at 24,980.65, up by 103.70 points. This broad-based market strength was observed across various sectors, with automobiles, consumer durables, and real estate leading the advance with gains between 2% and 4%. Other sectors contributing to the positive momentum included metals, FMCG, telecom, and private banking.
The Indian rupee also demonstrated strength, appreciating against the US dollar to close at approximately ₹86.99. This appreciation was supported by consistent equity inflows and the prevailing positive sentiment regarding reform measures. Analysts indicated that the proposed GST reforms, which aim to simplify the tax structure into two primary rates of 5% and 18%, with a potential 40% top bracket for demerit goods, are a key driver of this optimism. This simplification is expected to boost domestic consumption and potentially ease inflationary pressures.
In the commodities market, gold prices saw a slight dip, settling near a two-week low at ₹99,860 per 10 grams, attributed to a weakening of safe-haven demand as geopolitical tensions showed signs of de-escalation. Conversely, silver futures for September delivery experienced a modest rise. Economically, India's outlook remains strong, with projections for GDP growth in FY2025-26 generally ranging between 6.3% and 6.7%, outperforming many peer economies. This resilience is underpinned by a strong consumer base, a broadening investment landscape, and a dynamic workforce.