Sensex, Nifty close higher as consumer stocks rally on lower GST rates, ITC leads
The broader Nifty was up 0.29% at 9,455.70 as of 0602 GMT, while the benchmark Sensex rose 0.42% at 30,592.06.business Updated: May 22, 2017 18:53 IST
Indian shares closed marginally higher on Monday, with consumer stocks leading the gains as sentiment remained upbeat after the government finalised rates for the upcoming Goods and Services Tax.
The broader Nifty closed 0.11% higher at 9,438.25, while the benchmark Sensex ended 0.35% up at 30,570.97.
The Nifty FMCG index ended up 3.6% after touching a record high earlier in the session. ITC Ltd closed up 6.08%.
The government on Friday unveiled four rate bands under the Goods and Services Tax (GST) for services in line with those applying to goods, a big departure from the current single rate of 15% applied on most services.
“Consumer stocks are gaining on the back of GST tax rates, which have been broadly in favour of FMCG stocks,” said Dharmesh Kant, head of Retail Research at Motilal Oswal Securities Ltd.
Renewable energy company Suzlon Energy Ltd surged as much as 8% to its highest since Jan 6, 2016 after the company posted a March quarter consolidated net profit compared with loss a year earlier.
Tata Power, down as much as 4.3% at its lowest since February, was among the top losers on the NSE index. The company reported a lower-than-expected March quarter consolidated net profit on Friday.