Sensex, Nifty gains on GST booster dose, Fed rate hike looms
Asian share markets were choppy over geo-political risks in Asia after North Korea fired four ballistic missiles, three of which landed at Japan’s exclusive economic zones, rattled East Asian markets.business Updated: Apr 10, 2017 18:04 IST
Indian shares closed higher on Monday after the Centre and states approved two crucial draft laws to roll out the country’s biggest tax reforms through Goods and Services Tax from July.
The Sensex opened higher and breached 29,000-level while Nifty crossed 8,950-level despite nervousness over prospects of Fed rate hike this month.
The Sensex closed 222 points higher or 0.8% at 29,054.28 while Nifty was also up 0.7%.
Reliance Industries was up 3.7% while Adani Ports gained 2.5% and Tata Motors 2.1%.
Consumer goods, auto and building materials were up on GST roll out hopes. The BSE FMCG index was up 0.5% while the Consumer Discretionary Goods and Services index was up 0.55%.
The MSCI’s broadest dollar-denominated index of Asia-Pacific shares outside Japan traded flat in early trade.
On Monday, Asian share markets were choppy over geo-political risks in Asia after North Korea fired four ballistic missiles, three of which landed at Japan’s exclusive economic zones, rattled East Asian markets.
Chances of interest rate hike by the US Federal Reserve looms and a slower-than-expected growth in China and geopolitical tensions on the edges. On Sunday, China cut its GDP growth target to a 25-year low of 6.5% for 2017 from 6.5-7% in 2016.
Nikkei closed down 0.5% while Strait Times 0.45% and Shanghai 0.3%. Europe slipped into the red in the evening.
The dollar slipped 0.2% to 113.83 yen, giving up some gains of last week on Fed rate hike news.
US benchmarks Dow Jones Industrial Average and Nasdaq also closed flat last week.
On Friday, Fed chair Janet Yellen said the central bank is set to raise rates at the next meeting on March 14-15 if jobs and inflation remains firm.
Last week, global markets were rallying after US President Donald Trump outlined to the Congress the need to slash tax rates and plans of a $1 trillion investment in infrastructure.