Indian shares rose in early trade Thursday and the rupee opened higher at 67.06 per dollar to extend gains for the third consecutive session, after the Union Cabinet cleared changes in the GST Constitutional Amendment Bill in a bid to strengthen the chances of passage of the crucial legislation that can potentially transform the tax structure by subsuming all indirect taxes and creating a single market. Among the BSE sector and industry indices telecom rose by 1.26% followed by finance 0.93%, bankex 0.89%, auto 0.71%, industrials 0.70%, metal 0.60% and capital goods 0.50% while healthcare fell 0.75% followed by FMCG 0.51%, energy 0.39% and consumer durables 0.23%.
Advertisement
The 50-share NSE Nifty recaptured the 8,600-level, by soaring 56.05 points or 0.65 per cent at 8,646.70.
On the day, after moving both ways during the session, the BSE Sensex settled 47.81 points or 0.17% higher at 28,024.33.
The Sensex touched a high of 28,210.88 points and a low of 27,899.93 points during the intra-day trade.
The BSE market breadth was tilted in favour of the bears – with 1,377 declines and 1,218 advances.
On Wednesday, the benchmark indices ended on a flat-to-positive note due to profit booking, combined with caution ahead of derivatives expiry and a key announcement over the USA interest rate.
Market sentiment was also weighed by yen’s appreciation.
The pan-India tax reform has been passed by the Lok Sabha but is stuck in the Rajya Sabha, where the government lacks a majority.
On the other hand, other Asian markets were trading in the negative zone in their early trade after the Federal Reserve left the door open for a USA interest rate hike this year. A hike in the United States interest rates can potentially lead FPIs (Foreign Portfolio Investors) away from emerging markets such as India.
“With earnings season failing to sizzle so far and GST poised to face hurdles, stocks faced a confidence crunch and came off the lofty peaks seen yesterday”, said Anand James Chief Market Strategist Geojit BNP Paribas Financial Services.
Volatility was also flared by the futures and options (F&O) expiry.
Advertisement
In addition, volatility was flared before the outcome of the US Fed’s FOMC (Federal Open Market Committee) meet.
