Sensex edges up as GST Bill makes headway

MUMBAI: Indian equities recovered moderately on Wednesday as consensus in Parliament over a constitutional amendment Bill to introduce Goods and Services Tax raised investors’ hopes, although the markets continued to remain cautious ahead of outcome of the US Federal Reserve meeting.

Mumbai, July 27

Indian equities recovered moderately on Wednesday as consensus in Parliament over a constitutional amendment Bill to introduce Goods and Services Tax raised investors’ hopes, although the markets continued to remain cautious ahead of outcome of the US Federal Reserve meeting.

BSE’s 30-scrip Sensex finally settled 0.17 per cent higher at 28,024.33, while the wider NSE Nifty ended at 8,615.80, up 0.29 per cent from the previous day’s trade.

Asian and European markets rallied on expectations of a stimulus from Bank of Japan, also helping markets firm up.

Seventeen of 30 Sensex components gained, with ICICI Bank (3 pc), Adani Ports (1.83 pc), Maruti Suzuki (1.64 pc), Tata Motors (1.38 pc), Lupin (1.12 pc), TCS (1.09 pc), Sun Pharma (1.02 pc), SBI (0.95 pc) and Bharti Airtel (0.87 pc) as the day’s winners.

ITC 1.51 per cent, Tata Steel 1.29 per cent, RIL 1 per cent and Axis Bank 0.90 per cent lost most.

Among the BSE sector and industry indices telecom rose by 1.26 per cent followed by finance 0.93 per cent, bankex 0.89 per cent, auto 0.71 per cent, industrials 0.70 per cent, metal 0.60 per cent and capital goods 0.50 per cent while healthcare fell 0.75 per cent followed by FMCG 0.51 per cent, energy 0.39 per cent and consumer durables 0.23 per cent.

Broader markets fared better, with mid-cap and small-cap indices rising up to 0.60 per cent.

The market breadth remained negative as 1,342 ended lower, 1,316 closed higher while 207 ruled steady.

The total turnover fell to Rs 3,487.26 crore from Rs 4,138.75 crore on Wednesday.

Covering-up of short positions ahead of Thursday's July month expiry in derivatives segment also gave equities a push.

Country's largest mortgage player HDFC Ltd jumped 1.48 per cent to Rs 1,387.80 after it reported a 26.86 per cent rise in consolidated net profit to Rs 2,796.92 crore helped by receipts from stake sale in general insurance arm.

Drug major Dr Reddy's Laboratories extended Tuesday's weakness and plunged further by 10.07 per cent to Rs 2,988.40 after 80 per cent fall in consolidated net profit.

In a breakthrough on GST — a sticking point between the central government and opposition in Parliament — Centre and states have agreed to bring tax rates lower than current levels.

"With state finance ministers meet on GST improving the potential for a consensus, Indian stocks recouped yesterday's losses. However, earnings so far having failed to enthuse markets," said Anand James, Chief Market Strategist, Geojit BNP Paribas Financial Services.

Meanwhile, US Federal Reserve’s two-day meeting will end later in the day. The Bank of Japan will meet on Friday.

Global markets edged up after media reports suggested that Japanese Prime Minister Shinzo Abe planned to unveil a stimulus plan worth over 28 trillion yen, days before the central bank is expected to unveil its own growth-boosting measures.

From Asia, Japan's Nikkei ended 1.72 per cent higher, while indices like Hong Kong, Singapore and Taiwan moved up by up to 0.43 per cent. However, China and South Korea based shares fell 0.11 per cent to 1.91 per cent.

Key European indices in countries like France, Germany and UK rose between 0.28 per cent and 1.44 per cent. PTI