The Indian stock market has experienced a significant rally recently, with the Nifty 50 and Sensex showing considerable fluctuations. As global and domestic market conditions continue to evolve, investors and traders are left wondering why the Indian markets are rising today, with the Sensex jumping 1,000 points and the Nifty crossing 25,000.
In today’s trading session, both the Sensex and Nifty 50 opened with a gap-up, reflecting strong positive sentiment at the start. As the session progressed, both indices maintained their momentum and didn’t break their day’s opening levels, signaling sustained strength. They are continuing to progress, fueled by a bullish rally, indicating strong market confidence.
Index Overview
The Nifty 50 Index opened at Rs. 24,938.20, with a gap-up of up to 1.25 percent from its previous close of Rs. 24,631.30. The index reached a high of Rs. 25,022 but is currently trading below its intraday high.
The Sensex Index opened at Rs. 81,315.79, with a gap-up of up to 0.89 percent from its previous close of Rs. 80,597.66. The index reached a high of Rs. 81,765.77 but is currently trading below its intraday high.
Reason for the Rise Today
GST Reforms and Positive Government Measures
The Indian government’s recent reforms, particularly in the Goods and Services Tax (GST) structure, have been a key driver for market optimism. Adjustments aimed at simplifying the GST system and easing compliance could reduce business costs and enhance economic growth.
In his Independence Day speech, Prime Minister Narendra Modi announced a big change in the Goods and Services Tax (GST) system. The government plans to remove the 12% and 28% tax slabs. Instead, most products and services that were taxed at 12% and 28% will now fall under the 5% and 18% tax slabs.
Trump – Putin Talks
US President Donald Trump held a key summit with Russian President Vladimir Putin in Alaska on August 15, with the main goal of finding a way to end the ongoing war in Ukraine. The meeting was significant, as it aimed to ease tensions between the two countries and discuss potential solutions to the conflict.
Just two days later, on August 17, Trump spoke about the “big progress” made in relations with Russia, highlighting positive developments in their discussions. This was followed by a meeting with Ukrainian President Volodymyr Zelensky and other European leaders, where further talks took place to address the crisis in Ukraine and strengthen international support for Ukraine.
Rally of Asian Peers
Asian stock markets saw a positive start on Monday, boosted by a “risk-on” sentiment as investors looked ahead to an important week for U.S. interest rate decisions. Oil prices also fell slightly as concerns over Russian supply disruptions eased.
Stock markets in Japan and Taiwan hit record highs, and Chinese blue-chip stocks reached their highest level in 10 months. The broader MSCI Asia-Pacific index, which tracks markets outside Japan, dipped slightly after reaching a four-year high last week. Overall, the mood in Asian markets remained upbeat, supported by strong economic signals and easing concerns over global supply issues.
Technical View
According to Technical View, the Sensex has been in bullish momentum over the past few days. Currently, the index is trading at Rs. 81,637, with support seen at Rs. 81,315 (the day’s low), followed by the next support at Rs. 80,613. The resistance level for the Sensex is at the round level of Rs. 82,000, supported by the 50-day moving average, and the next resistance is at Rs. 82,800, and the stock is currently trading with an RSI level of 43.14.
The Nifty 50 has also been in bullish momentum over the past few days. Currently, the index is trading at Rs. 24,984, with support seen at Rs. 24,884 (the day’s low), followed by the next support at Rs. 24,632. The resistance level for the Nifty 50 is at the round level of Rs. 25,000- 25,020, supported by the 50-day moving average, and the next resistance is at Rs. 25,246 and the stock is currently trading with an RSI level of 54.77.
Written by Sridhar J
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