Stock markets on Monday staged a smart rally with BSE Sensex advancing by 195 points to end at 31,882.16 and the Nifty going past the 10,000-mark for the first time since August 7 after the GST council announced a less-than-expected GST cess and rising vehicle sales.
The Sensex opened on a better note at 31,798.31 and rose to the day’s high of 31,952.87. However, some profit booking in recent gainers pulled the index down to a day’s low of 31,797.89 points. The BSE benchmark finally closed at 31,882.16, up 194.64 points, or 0.61 per cent. It had gained 25.55 in the previous two sessions.
The 50-share Nifty index of the National Stock Exchange reclaimed the 10,000-mark to hit high of 10,028.65 before ending 71.25 points, or 0.72 per cent, at 10,006.05, its highest closing since August 7. During the session, Nifty also touched a low of 9,968.80.
Dealers said there was buying in blue-chip stocks ahead of release of industrial production data for July and retail inflation for August, to be released on Tuesday. The GST Council on Saturday exempted small and hybrid cars from any hike but decided to levy an additional 2 per cent to 7 per cent cess on mid-sized and luxury cars as also SUVs. “This cess was lower than what was feared earlier,” said a dealer.
Meanwhile, domestic passenger vehicle sales grew 13.76 per cent in August as consumers tried to make the most out of price cuts after GST implementation ahead of an imminent hike in cess rates. The sentiment also supported by higher Asian markets as investors reacted with relief after North Korea refrained from conducting another missile test this weekend.
Vinod Nair, Head of Research, Geojit Financial Services, said, “domestic market inched up supported by positive impetus in global market due to weakened hurricane Irma in US and sign of melting geopolitical tensions. Investors are also awaiting the outcome of CPI Inflation, IIP data tomorrow for any turnaround after the disruption from GST.”
According to Karthikraj Lakshmanan, Senior Fund Manager, BNP Paribas Mutual Fund, markets across the globe took a breather from the recent sell-off and traded in the positive territory on Monday. “Investors heaved a sigh of relief as the North Korean dictator abandoned his weekend plans of launching another missile in favour of a party.”
The rupee on Monday retreated from its one-month high to end lower by 15 paise to 63.93 a dollar on overwhelming demand for the American currency from corporates and banks.