Domestic equity benchmarks Sensex and Nifty extended their gains to the second session on Thursday, buoyed by optimism around the sweeping GST 2.0 reforms and supported by firm global cues.
At 9:22 am, the BSE Sensex was up 513.84 points, or 0.64 per cent, at 81,081.55, after rising as much as 888 points in early trade. The NSE Nifty50 climbed 142 points, or 0.57 per cent, to 24,857.05, having hit a day’s high of 24,980.75.
Investors’ wealth rose by more than Rs 4 lakh crore in the early session as the overall market capitalisation of BSE-listed firms jumped to nearly Rs 456 lakh crore from Rs 452 lakh crore in the previous session.
Among Sensex stocks, Mahindra & Mahindra led gainers, rising 6.47 per cent to Rs 3,497. Bajaj Finance shares climbed 4.10 per cent. Other gainers included UltraTech Cement (up 2.51 per cent), Bajaj Finserv (up 2.40 per cent) and Hindustan Unilever (up 2.06 per cent).
In global markets on Wednesday, the S&P 500 rose 0.51 per cent to close at 6,448.26, while the Nasdaq gained 1.03 per cent to 21,497.73. The Dow Jones Industrial Average slipped 0.05 per cent to settle at 45,271.23. The gains in S&P 500 and Nasdaq came as investors grew optimistic that the US Federal Reserve would cut interest rates later this month.
At last check, Asian markets traded mixed on Thursday, with Japan’s Nikkei 225 rising 1.23 per cent to 42,456.16, while Hong Kong’s Hang Seng Index slipped 1.21 per cent to 25,036.12.
VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said the revolutionary GST reform has come better than expected benefitting a wide spectrum of sectors.
“The ultimate beneficiary is the Indian consumer who will benefit from lower prices. The potential big boost to consumption in an economy that is already in growth momentum will be big and may surprise on the upside. This GST reform along with the fiscal and monetary stimulus already provided can trigger a virtuous cycle and boost India’s growth to 6.5 per cent in FY 26 and perhaps 7 per cent in FY 27 with impressive gains in corporate earnings,” Vijayakumar said.
“The market will start discounting this likely emerging scenario. Stocks in sectors as varied as automobiles, FMCG, white goods, cement, insurance etc will be the focus of attention of the bulls. Autos are likely to outperform. There is a high probability of short covering today pushing prices higher than expectations.However, after the initial enthusiasm, tariff issues will continue to haunt the market,” Vijayakumar added.
On Wednesday, the Sensex climbed 409.83 points, or 0.51 per cent, to close at 80,567.71, while the Nifty50 advanced 135.45 points, or 0.55 per cent, to end at 24,715.05.
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