Indian equity indices closed higher on Thursday, extending a four-day rally, as investors reacted positively to news of GST reforms while managing profit booking in select sectors.
The BSE Sensex ended at 82,000.71, up 142.97 points or 0.17 per cent. The 30-share index had opened higher at 82,220.46 against Wednesday’s close of 81,857.84 but remained range-bound during the session due to profit booking in the Auto and FMCG sectors.
The NSE Nifty settled at 25,083.75, up 33.20 points or 0.13 per cent.
“Indian equities ended mixed as investors booked profits following a recent rally and concerns over premium valuations amid subdued Q1 earnings,” said Vinod Nair, Head of Research, Geojit Investments Ltd.
In a positive development, the Group of Ministers (GoM) approved scrapping the existing four-tier GST structure in favour of dual rates of 5 per cent and 18 per cent. “This marks the first major step in implementing next-generation GST reforms announced by Prime Minister Narendra Modi in his Independence Day address,” said Siddhartha Khemka, Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd.
India’s record-high composite PMI for August, reflecting strong expansion in both manufacturing and services, particularly in business activity, is expected to provide near-term stability, analysts noted.
Among individual stocks, Bajaj FinServ, ICICI Bank, Bajaj Finance, L&T, BEL, Sun Pharma, and Titan were top gainers on the Sensex, while PowerGrid, Eternal, Hindustan Unilever, NTPC, Mahindra & Mahindra, and Tata Motors ended in the red.
Sectoral indices showed mixed trends. Nifty Fin Services (up 85 points or 0.32 per cent) and Nifty Bank (up 56.95 points or 0.10 per cent) ended higher, whereas Nifty Auto (down 91.75 points or 0.36 per cent) and Nifty FMCG (down 361 points or 0.64 per cent) fell. Nifty IT remained almost flat. Broader indices also faced some pressure, with Nifty Midcap 100 down 221 points or 0.38 per cent, while Nifty Small Cap 100 and Nifty 100 ended near previous levels.
Analysts expect Indian markets to remain firm, supported by optimism over GST reforms and improved corporate earnings momentum.
The rupee weakened by 0.17 per cent, closing at 87.22 against the US dollar as markets reacted to the anticipated GST restructuring.
-IANS