MUMBAI– Indian equities closed modestly higher on Thursday, marking their fourth straight day of gains, as optimism over tax reforms helped offset profit booking in key sectors.
The Sensex ended at 82,000.71, up 142.97 points or 0.17 percent. The 30-share index opened strong at 82,220.46, compared to the previous close of 81,857.84, but traded in a narrow range through the day as selling in auto and FMCG stocks capped broader gains.
The Nifty also settled higher, closing at 25,083.75, up 33.20 points or 0.13 percent.
“Indian equities ended mixed, as investors turned to profit booking after a recent rally and concerns over premium valuation due to the subdued end of Q1 earnings,” said Vinod Nair, Head of Research at Geojit Financial Services.
Markets were buoyed, however, by a key policy development. The Group of Ministers (GoM) on GST rate rationalization approved a plan to simplify the system by moving away from the current four-rate structure to a dual-rate model of 5 percent and 18 percent.
“This marks the first major step in implementing the next-generation GST reforms announced by Prime Minister Narendra Modi in his Independence Day address,” said Siddhartha Khemka, Head of Research for Wealth Management at Motilal Oswal Financial Services.
India’s record-high composite PMI for August, reflecting robust expansion in both manufacturing and services, is expected to provide further near-term stability, analysts added.
Among Sensex gainers were Bajaj FinServ, ICICI Bank, Bajaj Finance, L&T, BEL, Sun Pharma, and Titan. Losers included PowerGrid, Hindustan Unilever, NTPC, Mahindra & Mahindra, and Tata Motors.
Sectoral indices were mixed: Nifty Financial Services rose 0.32 percent, Nifty Bank gained 0.10 percent, while Nifty Auto slipped 0.36 percent and Nifty FMCG fell 0.64 percent. Nifty IT closed flat.
Mid- and small-cap indices showed weakness, with Nifty Midcap 100 down 0.38 percent, while Nifty Small Cap 100 and Nifty 100 ended nearly unchanged.
The rupee also traded weaker, slipping 0.17 to 87.22 against the dollar as markets digested the implications of the GST revamp.
Looking ahead, analysts expect Indian equities to remain supported by optimism over tax reforms and improving corporate earnings momentum. (Source: IANS)
