Sensex surges 416 points, Nifty regains 8,100 mark

Tribune News Service

New Delhi, December 18

The BSE benchmark Sensex today recorded its biggest one-and-a-half month gain of 416 points to reclaim 27,000-mark and the 50-issue Nifty of NSE regained the 8,100 level after “dovish” commentary by the US Fed and a rise in crude oil prices.

Besides, market sentiments were also aided by the Cabinet’s clearance to the Constitutional Amendment Bill on Goods and Services Tax (GST), clearing the way for its introduction in the ongoing session of Parliament.

Sanjeev Zarbade, vice-president, Private Client Group Research, Kotak Securities, said Indian markets bounced back strongly helped by the US markets which ended sharply up yesterday after dovish comments from the Fed and a rise in crude prices on fall in inventory data.

He said as far as Indian market is concerned, progress on reforms such as GST would be taken positively and soft crude price is a key positive.

Dinesh Thakkar, chairman & managing director, Angel Broking, said post cabinet clearance, the GST Bill looks to be moving closer to reality. At present, it is one of the key reforms that the government is pushing for and its implementation is likely to have a positive impact on the economy, with estimates show a potential 1-2 per cent increase in GDP growth.

He said, “It (GST Bill) will be a sentiment booster as it will reaffirm investors’ faith that the government has the ability to push through major structural reforms.”

Vinod Nair, head-fundamental research, Geojit BNP Paribas Financial Services, said volatility in equity, commodity and currency had subsided after the Fed meet. Hence, markets had re-couped much of the earlier losses.

Other factors such as improvement in macro fundamentals (inflation and fiscal), cut in interest rate and Budget will lend adequate support to the market in the medium-term.