MUMBAI– Indian equity benchmarks closed with modest gains on Thursday after a volatile session, as early optimism over GST reforms was offset by profit booking and weakness in IT stocks.
The Sensex jumped more than 900 points at the open, hitting 81,456.67 against the previous close of 80,567.71. But much of that momentum faded through the day, with the index finally settling at 80,718.01, up 150.30 points or 0.19 percent. The Nifty ended at 24,734.30, up 19.25 points or 0.08 percent.
“Markets witnessed a volatile session and ended marginally higher, supported by sweeping GST reforms that signaled a structural tax overhaul. The Nifty opened on a strong note, led by sharp gains in auto and consumer staples, but profit-taking and weakness in select heavyweights dragged the index lower as the day progressed,” said Ajit Mishra, SVP of Research at Religare Broking.
Sector performance was mixed. Auto, financials, and FMCG stocks led the advance, while IT, energy, and realty lagged. Broader indices underperformed, with Nifty Smallcap 100 down 0.71 percent and Nifty Midcap 100 slipping 286.35 points.
Among Sensex constituents, Mahindra & Mahindra, Trent, ITC, HDFC Bank, ICICI Bank, and Asian Paints posted gains, while Maruti, BEL, HCL Tech, PowerGrid, Infosys, NTPC, Kotak Bank, Tech Mahindra, Tata Motors, Tata Steel, and UltraTech Cement closed in the red.
On the sectoral front, Nifty Financial Services rose 0.47 percent, Nifty Auto gained 219.40 points, and Nifty FMCG advanced 0.24 percent. Nifty Bank ended flat, while Nifty IT fell 0.94 percent.
Analysts said the GST 2.0 reforms reinforced expectations of a consumption-led recovery, with autos and consumer staples seen as key beneficiaries. Select metals and infrastructure names linked to rural stimulus also remain in focus.
Meanwhile, the rupee traded weaker at 88.11 against the U.S. dollar, slipping 0.07, as foreign institutional investors stayed net sellers despite the positive tax reform sentiment. (Source: IANS)
