Stock Market Live: Sensex surges over 1,100 pts, Nifty inches close to 25K; Maruti, Bajaj Finance, UltraTech, M&M lead

"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 benifit," said VK Vijayakumar, Chief Investment Strategist, Geojit Investments.

TVS Motors, Hero, Eicher, M&M and Maruti are likely to respond positively to the news. Insurance companies are also expected to benefit from the GST revision. S&P 500 upgrading India’s sovereign credit rating is another major positive. But the market ignored this announcement since the negative news flows are also strong. India-US trade talks are unlikely to happen before August 27th deadline.

The ‘ Trump Sword’ of 50% tariff dangling on India will restrain the market enthusiasm which can be triggered by the positive news mentioned earlier. 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, he added.

The week is likely to start on a cheerful note, as markets draw optimism from Prime Minister Narendra Modi’s Independence Day address. His statement on a potential GST rate reduction ahead of Diwali has the potential to significantly boost sentiment and lift equities out of the bear grip, said Santosh Meena, Head of Research at Swastika Investmart.

Adding to the positive backdrop are several domestic factors, including easing interest rates, record-low inflation, and a favorable monsoon. “Together, these macroeconomic drivers, along with expectations of GST cuts, could provide the much-needed trigger for a bullish reversal in Indian equities, even as tariff-related headwinds continue to weigh on global markets,” he added.

On the global front, investors will react to the August 15 meetings between U.S. President Donald Trump and Russian President Vladimir V. Putin in Alaska, which both leaders described as “productive,” though progress on Ukraine remains unresolved. Additionally, the U.S. Federal Reserve meeting minutes and upcoming U.S. macroeconomic data - including building permits, housing starts, FOMC minutes, jobless claims, and flash PMI surveys - will be crucial for market direction.

On the domestic macro front, market participant will closely monitor the HSBC India Manufacturing, Services, and Composite PMIs to gauge growth momentum. The market will also react to historic sovereign rating upgrade by S&P Global, which raised India's long-term credit rating to 'BBB' from 'BBB-' with a stable outlook.

Indian equity benchmarks, BSE Sensex and NSE Nifty, are set to rally in opening trade on Monday, despite mixed cues from global peers, following Prime Minister Narendra Modi's announcement of GST reforms in his Independence Day address.

Sentiment is further expected to get a boost from S&P’s upgrade of India’s sovereign credit rating to investment grade, the first in 18 years and the highest in 35 years, as well as the likely pause on the 25% tariffs on India’s exports to the U.S. after some progress in U.S.-Russia talks.

At 8:20, GIFT Nifty futures were up 309 points at 24,964, signalling a strong opening for the benchmark indices.