Mumbai July 3 (IANS) Cheering the launch of the country s biggest indirect tax reform -- the Goods and Services Tax (GST) -- on July 1 the Indian equity markets turned bullish and closed with substantial gains on Monday.
Market observers opined that the key indices rose close to 1 per cent on the first trading day of the month as positive global cues and healthy automobile results buoyed investors sentiments.
The S&P BSE FMCG index rose by 3.40 per cent to hit a record high with ITC -- which is the largest contributor to the index -- witnessing the highest momentum.
According to market analysts stocks of the FMCG major rose after additional excise duty on cigarettes was removed under the GST regime.
With implementation of GST FMCG stocks rallied especially ITC after news of no additional excise duty on cigarettes. The shift from unorganised sector to organised sector is beneficiary to FMCG companies Dhruv Desai Director and Chief Operating Officer of Tradebulls told IANS.
The wider Nifty of the National Stock Exchange (NSE) rose by 94.10 points or 0.99 per cent to close at 9 615 points.
The 30-scrip Sensitive Index (Sensex) of the BSE which opened at 31 156.04 points closed at 31 221.62 points -- up 300.01 points or 0.97 per cent from its previous close at 30 921.61.
The Sensex touched a high of 31 258.33 points and a low of 31 017.11 during intra-day trade.
The BSE market breadth was bullish -- 1 799 advances and 876 declines.
The broader market indices outperformed the Sensex with the S&P BSE mid-cap index up by 1.13 per cent and the small-cap index by 1.05 per cent.
The first trading session of July started on a positive note as the key benchmark indices settled with healthy gains on the back of positive global cues. The sentiment was also helped after the biggest tax reform the GST came into force from July 1 Deepak Jasani Head of Retail Research HDFC Securities told IANS.
A rally in ITC helped the Nifty to register healthy gains. Major Asian markets ended on a positive note barring the Straits index. European indices like FTSE 100 CAC 40 and DAX traded higher he added.
However on the currency front the rupee weakened by 30 paise to 64.88 to a US dollar from its previous close at 64.58.
In investments provisional data with the exchanges showed that foreign institutional investors (FIIs) sold stocks worth Rs 804.67 crore while domestic institutional investors (DIIs) purchased scrips worth Rs 954.34 crore.
Market turnover was higher today and index future and option saw rise in volume against Friday s numbers. Carmakers stock prices jumped after car companies posted monthly sales numbers Desai added.
Sector-wise all the 19 sub-indices of the BSE ended in the green. The S&P BSE FMCG index surged by 354.69 points the automobile index by 310.85 points and the metal index by 210.82 points.
Major Sensex gainers on Monday were: ITC up 5.70 per cent at Rs 342.30; Hero MotoCorp up 2.17 per cent at Rs 3 777; Maruti Suzuki up 1.96 per cent at Rs 7 359.30; Coal India up 1.95 per cent at Rs 248.95; and Infosys up 1.68 per cent at Rs 951.40.
Major Sensex losers were: NTPC down 1.17 per cent at Rs 156.60; Kotak Bank down 0.72 per cent at Rs 948.55; Cipla down 0.60 per cent at Rs 551.05; Sun Pharma down 0.54 at Rs 551.50; and Lupin down 0.50 per cent at Rs 1 055.15.
--IANS
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Equity markets cheer GST launch, auto results; ITC top gainer (Roundup)
