Domestic equity indices closed with modest gains on Thursday after a volatile session, as early optimism over GST reforms was offset by profit booking and weakness in IT stocks.
The Sensex surged more than 900 points in opening trade, touching 81,456.67, before losing most of its gains. It eventually ended at 80,718.01, up 150.30 points or 0.19 per cent. The Nifty settled at 24,734.30, up 19.25 points or 0.08 per cent.
“Markets witnessed a volatile session and ended marginally higher, supported by sweeping GST reforms that signalled a structural tax overhaul. The Nifty opened on a strong note, led by sharp gains in auto and consumer staples, but profit-taking and weakness in select heavyweights dragged the index lower as the day progressed,” said Ajit Mishra, SVP, Research, Religare Broking.
Sectorally, auto, financials, and FMCG stocks led the advance, while IT, energy, and realty lagged. Broader indices underperformed, with Nifty Smallcap 100 falling 0.71 per cent and Nifty Midcap 100 slipping 0.57 per cent.
Among top Sensex gainers were Mahindra & Mahindra, Trent, ITC, HDFC Bank, ICICI Bank, and Asian Paints. On the losing side, Maruti Suzuki, BEL, HCL Tech, PowerGrid, Infosys, NTPC, Kotak Bank, Tech Mahindra, Tata Motors, Tata Steel, and UltraTech Cement ended in the red.
Analysts said the GST 2.0 reforms strengthen the case for a consumption-led recovery, with auto and consumer staples expected to benefit the most. Select metals and infrastructure stocks linked to rural stimulus are also expected to remain in focus.
Meanwhile, the rupee traded weak at 88.11, down 0.07, as foreign institutional investors remained net sellers despite the reform-led sentiment.
–IANS