Millennium Post

GST Bill lifts Sensex by 416 pts to snap five-day losing string

The US Federal Reserve Board decision not to hike rates this time and hint of not doing anytime soon coupled with hopes of further fresh reforms after the Cabinet passing the Consitutional Amendment Bill on Goods and Services Tax on Wednesday helped the benchmark SP BSE Sensex to broke its five sessions of losing string and zoomed by 416 points to regain 27K-mark to end at 27,126.57 on Thursday.

As a result, global stocks got a boost due to US Fed’s decision, ultimately influencing the local bourses.

The US Federal Reserve in its two-day monetary policy meet, which concluded on Wednesday, decided against raising  interest-rate, which is positive for the emerging markets, including India, which will get fresh money after recent sell-off.The investors will go for riskier assets like stocks rather than with the low returns on US bonds.

Back at home, the Cabinet approved a bill on a nationwide goods and services tax (GST) clearing the way for its introduction in ongoing session of Parliament to bring about long-ending indirect tax reforms, whcih has positive impact on the market.

Buying was seen across-the-board as all 12 sectoral indices closed in the green by 1.09 per cent and 5.26 per cent  with consumer durable, power, capital goods, realty, bankex, auto and metal taking the lead.

The BSE 30-share barometer resumed with an upwide gap of over 340 points and remained in positive terrain throughout the day before concluding at 27,126.57, showing a rise of 416.44 points — biggest rise in 1-1/2-month — or 1.56 per cent. In the last straight five sessions, it had plunged by 1,120.97 points or 4.03 per cent.

Smart rise in ICICI Bank, L&T, Infosys, HDFC Bank, Tata Motors, Axis Bank, RIL, Maruti Suzuki, SBI, ITC and HDFC together contributed over 300 points to the sensex kitty. Jignesh Chaudhary, Head Of Research, Veracity Broking Services said, “Today Indian equity opened positively followed by the rupee appreciation as Asian markets were trading positively in the morning after the US Federal Reserve said it would wait in deciding when to raise interest rates. As the day progress global sentiment improved and local indices gained over one & half percent during the day.”

On the global front, barring China and South Korea which closed just in the red, others like Hong Kong, Japan, Singapore and Taiwan ended higher between 0.51 per cent and 2.32 per cent.

European market too were quoting strong in their late morning deals on confidence over global growth after US Fed promised to be stable on interest rates increase. The CAC was up by 1.84 per cent, the DAX by 1.85 per cent and FTSE by 0.52 per cent.

Out of the Sensex pack, 27 finished with gains while others ended with losses. Major gainers were Bhel 4.91 per cent, Hindalco 4.31 per cent, Gail India 4.19 per cent, Maruti Suzuki 3.91 per cent, NTPC 3.83 per cent, ICICI Bank 3.82 per cent, Tata Power 3.69 per cent, Cipla 3.28 per cent, Axis Bank 2.56 per cent and L&T 2.41 per cent.

`Rs gains 50p to 63.11 per $

The rupee on Thursday rose by 50 paise, the steepest single day gain in the last seven months, to end the day’s trade at 63.11 against the dollar, in tune with strong recovery in stocks after the US volatility in currency, equity and commodity subsided after Janet Yellen said the Fed is unlikely to start its rate hike process for “at least the next couple of meetings”.

Fresh dollar selling by exporters and some banks also aided the rupee. At the Interbank Foreign Exchange (Forex) market, the local unit commenced higher at 63.35 a dollar from previous close of 63.61 and immediately touched 63.39. In tandem with a sharp rise in local equities, the local currency settled at 63.11, a gain of 50 paise or 0.79 per cent. In the last three days, it had fallen by 132 paise.
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