Sensex scales fresh peak on GST rate cut, gains 222 points at close
The Sensex ended at 36,718, up 222.23 points, while the broader Nifty50 settled at 11,084, up 74.55 points. The Sensex opened higher at 36,501.05 and gathered momentum on massive buying to hit an all-time intra-day high of 36,749.69.
The benchmark indices ended higher on Monday with the Sensex climbing to a record close, as consumer goods stocks gained after the GST Council cut rates on over 100 items, including footwear, refrigerator, washing machine and small screen TV, while exempting the widely demanded sanitary napkins from the levy. The revised tax rates will come into effect from July 27.
The Sensex ended at 36,718, up 222.23 points, while the broader Nifty50 settled at 11,084, up 74.55 points. The Sensex opened higher at 36,501.05 and gathered momentum on massive buying to hit an all-time intra-day high of 36,749.69 as FMCG major ITC, Hindustan Unilever and Asian Paints rallied.
Trading sentiment was also upbeat after the no-confidence motion was comfortably defeated in the Lok Sabha on Friday.
In the broader market, the BSE Midcap and the BSE Smallcap indices outperformed to gain 1.3 per cent and 0.9 per cent, respectively.
Market breadth, indicating the overall health of the market, turned positive. On the BSE, 1,529 stocks rallied, 1,061 stocks declined, while 186 stocks remained unchanged.
"Reducing GST rates and positive cues from ongoing result season supported the market. Consumption oriented sector inched higher in expectation of improvement in margin and volume growth on account of lower GST rates. Subsequently, inflation is likely to moderate which will refrain RBI from further tightening. Global market remained volatile but appreciation in rupee and favorable domestic macros countered the headwinds," said Vinod Nair, Head of Research, Geojit Financial Services.
Among individual stocks, ITC ended 3.7 per cent higher after the government kept the cess on cigarettes unchanged during its weekend meeting.
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Agrochemicals company UPL surged 15 per cent after it on Friday it would buy a unit of Platform Specialty Products for $4.2 billion.
Among losers, South Indian Bank share price tanked a whopping 18 per cent on Monday after the Kerala-based bank declared a steep fall of over 77 per cent in its net profit for the June quarter. South Indian Bank reported net profit of Rs 23.04 crore for the first quarter of the financial year 2018-19 as against Rs 101.47 crores during the corresponding period last year.
Meanwhile, foreign portfolio investors (FPIs) bought shares worth Rs 310.27 crore, while domestic institutional investors offloaded shares worth Rs 50.73 crore on Friday, provisional data showed.
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