Sensex, Nifty jump on GST roll out hopes, global markets choppy on Fed rate hike chance

In India, the approval of two crucial draft legislation on Saturday for rolling out Goods and Services Tax from July, may keep shares of consumer goods, auto and building materials in focus.

Indian shares opened higher on Monday after the Centre and states approved two crucial draft laws to roll out the Goods and Services Tax from July.

A man looks at a screen across a road displaying the Sensex on the facade of the Bombay Stock Exchange (BSE) building in Mumbai. (Reuters File Photo)

The Sensex opened higher and breached 29,000-level while Nifty crossed 8,950-level.

Consumer goods, auto and building materials were up on GST roll out hopes.

Reliance was up 2.8% in early trade while NTPC was up 1.7%, SBI 1.4% and Axis Bank 1.3%.

On Monday, Asian shares slid as investors were nervous over prospects of Fed rate hike this month. The MSCI’s broadest dollar-denominated index of Asia-Pacific shares outside Japan traded flat in early trade.

Nikkei was down 0.4% while Kospi fell 0.15%, Strait Times 0.45% and Shanghai 0.3% in early trade.

The dollar slipped 0.2% to 113.83 yen, giving up some gains of last week on Fed rate hike news.

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.

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.