Markets end in green, brace for initial GST hiccups

Stock markets showed some strength

on the first session of the new derivatives July series today,

with the BSE Sensex gaining over 64 points to 30,921.61 as

investors took to optimistic buying ahead of GST rollout,

expecting some hiccups on the way in the short-term.

For the week, the Sensex recorded a fall of 216.60

points, or 0.69 per cent, while the broader Nifty lost 54.05

points, or 0.56 per cent.

FMCG, healthcare and consumer durable stocks led by

ITC Ltd, Sun Pharma, Cipla and Dr Reddy hogged the limelight

on the back of fresh round of buying by investors and domestic

institutional investors, helping the key indices to reverse

losses to close in the positive terrain.

The fag-end buying, spread over to a broad front, came in

the face of start of July futures and options series in the

derivatives segment, dealers said.

The stage is set for the launch of a nationwide goods and

services tax (GST) at midnight today.

Anupam Singhi, COO of William O'Neil India said, "Today,

the D Street has embraced a cautious stance ahead of the

crucial switch to the new indirect tax regime. However, the

market ended the day in green due to a bout of buying in the

last hour of trade."

Despite opening lower, the 30-share Sensex stayed in the

negative zone for the most part and touched a low of 30,680.66

as investors were seen trimming their positions despite

beginning of July series in the derivatives segments. The

gauge finally settled higher 64.09 points, or 0.21 per cent,

at 30,921.61.

The index had gained 23.20 points in the previous

session.

The 50-share NSE Nifty too ended higher by 16.80 points,

or 0.18 per cent, at 9,520.90, after touching a low of

9,448.75 and a high of 9,535.80.

"Despite global weaknesses, investors focus on sector

specific buying ahead of GST implementation helped the market

to recoup intra-day losses. Flight of foreign funds from

equity and weakness in INR continue to alert investors as the

short term benefit from GST is likely to be disruptive," Vinod

Nair, Head of Research, Geojit Financial Services Ltd said.

ITC Ltd gained the most, up 4 per cent, to Rs 323.85,

followed by Sun Pharma 2.97 per cent and Tata Steel 1.80 per

cent. Other gainers were Cipla (1.76 pc), Dr Reddy's (1.59 per

cent), PowerGrid (1.40 pc), TCS (1.27 pc), Axis Bank (0.86

pc), Kotak Bank (0.75 pc) and Infosys (0.60 pc).

However, market heavyweight RIL fell 0.91 per cent to Rs

1,380.25, while Hero MotoCorp went down 1.25 per cent to Rs

3,672.65 and ICICI Bank fell 1.23 per cent, to Rs 290.10.

Among the BSE sectoral indices, FMCG gained the most by

surging 2.24 per cent, followed by consumer durables (2.07 per

cent), healthcare (1.47 per cent), power (0.56 per cent), IT

(0.56 per cent), teck (0.39 per cent) and PSU (0.35 per cent).

The broader markets too showed an upward trend with

small-cap rising 0.66 per cent and mid-cap edging up 0.63 per

cent as investors raised their bets.

Central Depository Services (India) Ltd (CDSL) made a

remarkable stock market debut today, listing at a premium of

nearly 68 per cent from the issue price of Rs 149 and settled

over 75 per cent higher at Rs 261.60.

Foreign portfolio investors (FPIs) net sold shares worth

Rs 1,140.77 crore, while Domestic Institutional Investors

(DIIs) bought shares worth Rs 600.23 crore yesterday,

provisional data showed.

Among the Asian markets, Shangnhai Composite Index rose

0.14 per cent, Japan's Nikkei was down 0.92 per cent. Hong

Kong's Hang Seng too settled down 0.77 per cent.

European markets were higher in their late morning trade

with Paris Frankfurt and London stock exchanges in the green.

(This article has not been edited by DNA's editorial team and is auto-generated from an agency feed.)