Sensex, Nifty jump over 1,000 points post PM Modi’s GST announcement

The Indian benchmark indices opened firmly in green on Monday, as auto stocks led the rally with Nifty Auto surging 4%. 

The BSE Sensex surged 1,056 points, or 1.31% to 81,654 points. The Nifty 50 jumped 354 points, or 1.44% up to 24,985.

Sectorally, the Nifty Auto led the gains with 4% jump. The Nifty Bank advanced 695 points or 1.26% to settle at 56,037.15. This comes following Prime Minister Narendra Modi’s Independence Day announcement of a significant revamp in the Goods and Services Tax (GST) framework. Reports suggest that the Centre is planning to abolish the existing 12% and 28% GST slabs, with most items expected to be realigned into the 5% and 18% categories.

Nifty Metal gained 1.22% while Nifty FMCG and Nifty Private bank surged 1.36% and 1.62% respectively. The majority of other indices showed moderate gains.

In the Nifty pack, Hero Motocorp led the gains with a jump of 7.18%. Maruti Suzuki, Bajaj Finance, Bajaj Auto, and M&M were the other major gainers. Among laggards, HCL Tech, Larsen, Dr Reddys Labs, ONGC, and TCS topped the charts.

“Last week’s reversal attempts stalled in the 24670-720 region, depriving Nifty of a bullish confirmation. However, 43% and 39% of mid- and small-cap index constituents, respectively, ended up above their respective 10-day SMAs, the highest since late July, suggesting that a broad market reversal is already in play,” said Anand James, Chief Market Strategist, Geojit Investments Limited.

“Technically, a decisive move above 24,750 could open the way for an upside toward 24,900 and 25,000, while immediate support lies at 24,600 and 24,500—both considered attractive zones for fresh long positions,” added Amruta Shinde from Choice Broking.

Asia-Pacific markets mostly rose on Monday, after the US-Russia summit concluded without a ceasefire.

The US markets slipped on Friday after hitting a record high, as the Dow Jones Industrial Average edged up by 0.08%, while the Nasdaq was down 0.4% and the S&P 500 went 0.29% down.

The Asian markets were green in the morning, as China's Shanghai index rose by 1.19%, Japan’s Nikkei was up 0.87%, and Hong Kong's Hang Seng Index gained 0.36%. South Korea's Kospi, however, declined by 1.29%.

The visit scheduled by US trade representatives to New Delhi between August 25 and August 29 will likely be rescheduled, according to reports.

On the last trading day on August 14, foreign institutional investors (FIIs) remained net sellers, offloading equities worth ₹1,926 crore, while domestic institutional investors (DIIs) purchased equities worth ₹3,895 crore.

(With inputs from syndicated feed)