Mumbai: Indian stock markets ended Monday on a strong note after Prime Minister Narendra Modi said the government is preparing major changes in the Goods and Services Tax (GST) system. These reforms are expected to roll out by Diwali. Investors welcomed the news, which along with an upgrade of India’s sovereign rating by S&P, fueled strong buying across sectors.
The Sensex jumped 1,168.11 points (1.44 percent) to close at 81,765.77, while the Nifty surged 390.7 points (1.58 percent) to reclaim the 25,000 level, ending at 25,022.
Auto and Consumer Stocks Shine
Auto shares were the biggest winners of the day. Maruti Suzuki soared over 8 percent, while Hero MotoCorp shot up nearly 9 percent. Mahindra & Mahindra, Bajaj Finance, UltraTech Cement, Trent and Bajaj Finserv also posted solid gains.
The BSE Auto Index jumped 4.57 percent to 56,404.06, making it the best-performing sector. Analysts expect auto and cement companies to benefit if GST rates are cut from 28 percent to lower slabs like 18 percent or 5 percent. Insurance companies may also gain from the revisions.
Few Laggards in Trade
Despite the upbeat market sentiment, a few heavyweight stocks ended in the red. Larsen & Toubro, Sun Pharma, HCL Technologies, and Infosys slipped during the day.
Expert View
According to VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, “There are strong tailwinds for the market. Announcements on GST reforms and the rating upgrade are big positives that can push markets further.”
Global Cues and FIIs
Asian markets traded mostly higher, with Japan’s Nikkei, Shanghai Composite, and Hong Kong’s Hang Seng in the green, though South Korea’s Kospi was lower.
Brent crude oil was nearly flat at USD 65.89 per barrel. Meanwhile, data showed Foreign Institutional Investors (FIIs) sold shares worth ₹1,926.76 crore on Thursday.
Previous Session Recap
On Thursday, markets had ended flat with the Sensex gaining just 57 points to 80,597 and the Nifty rising 11 points to 24,631. Markets were closed on Friday for Independence Day.
