Sensex snaps 4-day falling spell, closes in the green as RS clears GST bill
The benchmark Sensex snapped its four-day falling spell on Thursday to close in the green after the Rajya Sabha passed the historic GST Bill on Wednesday amid signs of strength in global markets.business Updated: Aug 04, 2016 19:54 IST
The benchmark Sensex snapped its four-day falling spell on Thursday to close in the green after the Rajya Sabha passed the historic GST Bill on Wednesday amid signs of strength in global markets.
At the close, it eked out a modest gain of 17 points, reflecting investor worries that the job ahead on the goods and services tax front is by no means easy and will need a great deal of hard work on the part of the Centre and states.
Billed as the biggest tax reform since Independence, the GST Bill looks to replace a string of local levies with a single tax to turn the country into a unified market.
Shares of auto, realty, infrastructure, power and healthcare led the rebound on good buying push while consumer durables, IT, banking and FMCG melted under selling pressure.
The benchmark opened on a strong footing on sustained foreign capital inflows as investors welcomed the outcome, and on positive Asian cues.
In the beginning, the 30-share Sensex jumped over 224 points, but turned lower after profit booking set in before ending higher by 16.86 points, or 0.06%, at 27,714.37.
The gauge had lost 511.11 points in the previous four straight sessions.
Tata Steel led the pack of gainers, which surged 4.60% to Rs 374.05 after reports that the government has recommended anti-dumping duty on imports of cold-rolled steel products. SAIL climbed 1.85% while JSW Steel rose 1.05%.
The Nifty closed at 8,551.10, up 6.25 points, or 0.07%, after hovering between 8,601.40 and 8,518.15.
Auto stocks were in a sweet spot on expectations that GST implementation will reduce on-road prices for entry-level vehicles and improve their affordability for the end-consumer.
Major gainers in the auto segment were Tata Motors, Hero MotoCorp, Bajaj Auto and Maruti Suzuki as investors widened their bets, lifting share prices by up to 4.41%.