GST rate cut impact: FMCG, consumer durable stocks trade in green on anticipated sales boost ahead of festive season
Top gainers include Asian Paint, ITC, Bharti Airtel, NTPC, Adani Ports, Coal India, ICICI Bank, Sun Pharma, and Vedanta gaining up to 3.77 percent
Mumbai: The benchmark BSE Sensex advanced over 100 points in early trade on Monday led by gains in FMCG stocks after the GST Council cut rates on over 100 items, amid fresh capital inflows by foreign funds and a strengthening rupee.
The 30-share index was trading higher by 114.10 points, or 0.31 percent, at 36,610.47. All the sectoral indices, led by FMCG, consumer durables and power stocks were trading in the positive zone, rising up to 1.21 percent. The gauge had gained 145.14 points in the previous session.
The NSE Nifty too rose by 42.60 points, or 0.39 percent, to 11,052.80.
Brokers said investor sentiment got a boost after the GST Council, on Saturday, cut rates on over 100 items, including mixer grinders, refrigerators, washing machines and small screen TVs, while sanitary napkins have been exempted from the levy.
The revised tax rates will come into effect from 27 July. Rate reductions will be implemented thereafter. Home appliances could get cheaper by eight to 10 percent.
Top gainers include Asian Paints, ITC, Bharti Airtel, NTPC, Adani Ports, Coal India, ICICI Bank, Sun Pharma, L&T, Axis Bank, Yes Bank, SBI and Vedanta, gaining up to 3.77 percent.
Meanwhile, the rupee surged by 19 paise to quote at 68.65 against the dollar at the forex market in early trade today.
However, other Asian markets were trading mixed after the Bank of Japan (BoJ) offered to buy bonds at the first fixed-rate operation since February, in a sign the central bank was trying to rein yields.
Earlier in the day, Japan's Nikkei was down 1.27 percent, Hong Kong's Hang Seng shed 0.09 percent in early trade, while the Shanghai Composite edged 0.37 percent higher.
The US Dow Jones Industrial Average ended 0.03 percent down on Friday.
The rupee has been under pressure over the last few trading sessions, as the detection of a new coronavirus variant re-ignited growth concerns and hurt risk appetite
The dollar index rose by 0.19 percent to 96.27 and the global oil benchmark Brent crude futures advanced 4.06 percent to USD 75.67 per barrel
The dollar index, which gauges the greenback's strength against a basket of six currencies, gained 0.10 percent to 96.12