Sensex rebounds on GST collection, global cues
A blockbuster start to the goods and services tax (GST) brought back optimism to the stock market as the benchmark BSE Sensex surged 258 points, or 0.82 per cent, to close at 31,646.46 on Wednesday and the NSE’s Nifty closed above 9,800, on improved risk appetite after US President Donald Trump’s measured approach to the Korean flare-up.
Metal and financial stocks turned favourites, in sync with upbeat global indices after lowering of the geo-political temperature. August derivatives contracts are set to expire on Thursday, which prompted liquidation of short positions. Investors’ wealth rose by ~1,54,494 crore.
The July tax collections so far at ~92,283 crore are in excess of the finance ministry’s internal estimate of ~91,000 crore, Finance Minister Arun Jaitley had said.
The 50-share Nifty surpassed the key 9,900-mark during the day, but gave in to pressure to take profit, as it settled at 9,884.40, up 88.35 points, or 0.90 per cent.
Shortly before the North Korean statement on its latest missile firing, Trump said “all options” were on the table, stopping short of striking a belligerent tone.
“Markets recouped from the previous day’s loss, taking cues from positive global markets due to no further escalation in the geo-political tensions. The domestic market was also buoyed by the better-than-anticipated tax collection under the GST regime,” said Vinod Nair, head of research at Geojit Financial Services.
RIL showed biggest traction, surging 2.12 per cent to ~1,564.15, followed by Adani Ports that rose 1.94 per cent. The Sensex had declined 362.43 points in the previous session on Tuesday. Domestic institutional investors showed support by buying shares worth ~1,391.33 crore. Foreign portfolio investors turned the other way, offloading shares worth ~1,459.64 crore on a net basis on Tuesday, provisional data showed.
Metal and mining stocks hummed with buying activity, mostly on the back of hardening of the commodity price cycle in copper and other base metals.
In the metal space, JSW Steel, Jindal Steel and Power, Hindustan Zinc, Hindalco, NMDC, Vedanta, National Aluminium, Coal India, Tata Steel and SAIL were big gainers, rising by up to 4.82 per cent. Trading volumes remained muted, as floods caused by heavy rains brought Mumbai to a grinding halt on Tuesday, causing many people to stay at home.
Broader markets such as mid-cap and small-cap indices left the benchmarks behind, with gains of 1.49 per cent and 1.33 per cent, respectively. HDFC Ltd, HDFC Bank, Hindustan Unilever and ONGC managed to keep their head above water, jumping by up to 1.83 per cent.