Indian equity indices edge higher as GST Council meet begins

Mumbai, Sep 3 (IANS) The Indian equity indices closed higher on Wednesday amid euphoria around GST rationalisation as the two-day GST Council meeting kicked off. Sensex settled at 80,567.71, up 409.83 points or 0.51 per cent.

The 30-share index opened a bit higher at 80,295.99 against last session's closing of 80,157.88. The index escalated the gaining momentum further to hit an intraday high at 80,671.28, buoyed by buying in metal, FMCG, Auto and banking stocks.

Nifty ended the session at 24,715.05, up 135.45 points or 0.55 per cent.

The Indian equities closed higher after a mixed start to the session, buoyed by expectations of a consumption-led stimulus from the potential GST slab rationalisation, said analysts.

All categories of consumer-based sectors, like discretionary, durable and staples, continued to outperform.

In the near term, market sentiment hinges on the outcome of the GST Council meeting, with traction on consumption-oriented stocks and sectors.

Tata Steel, Titan, Mahindra and Mahindra, Eternal, SBI, ITC, Trent, HDFC Bank, Tata Motors, Sun Pharma, Kotak Bank, L&T and Asian Paints were among the top gainers. Infosys, Hindustan Unilever, NTPC, TCS and Bharati Airtel were settled lower.

The majority of Sectoral indices rallied, led by Nifty Metal, which soared 3.11 per cent or 292 points amid heavy buying. Nifty Fin Services jumped 159.60 points or 0.62 per cent, Nifty Bank surged 406.55 points or 0.76 per cent, Nifty Auto soared 190 points or 0.74 per cent, and Nifty FMCG escalated 162 points or 0.29 per cent.

Broader indices followed suit as well. Nifty Small Cap 100 soared 157.15 points or 0.89 per cent, Nifty Midcap 100 jumped 143 points or 0.57 per cent, Nifty Next 50 closed 445.30 points or 0.66 per cent.

Rupee traded slightly positive with gains of 0.13 at 88.02 as markets showed minor strength with focus on the ongoing GST meeting, where the outcome in the coming days could provide support to the currency.

"However, persistent trade tariff concerns continue to weigh on sentiment, keeping pressure intact on the rupee. While GST reforms may help cushion the fall, the overall trend remains weak, and the rupee may test levels towards 89.50 in the coming months. For the near term, the range is expected between 87.90–88.45," said Jateen Trivedi of LKP Securities.

--IANS

aps/na