Sensex salutes GST with 300-point rise, Nifty ends above 9,600; ITC shines

Extending gains for the third straight session, the benchmark indices rose nearly 1% as consumer goods makers such as ITC surged on hopes the newly implemented Goods and Services Tax (GST) would reduce retail prices and boost sales.

The S&P BSE Sensex settled the trade at 31,221, up 300 points, while the broader Nifty50 ended at 9,615, up 94 points.

In the broader market, the S&P BSE Midcap and the S&P Smallcap indices rallied over 1% each.

Market breadth depicted strength. There were more than two gainers against every loser on BSE. 1,793 shares rose and 870 shares fell. A total of 171 shares were unchanged.

Sectors and stocks

All sectoral indices on NSE ended in green with The Nifty FMCG index (up 3.8%) being the leading gainer. The index climbed as much as 5.6% to an all-time high of 28,267 in intraday trade.

Cigarette maker ITC was among the top gainers, rising as much as 9.62% to a record high of Rs 354.80. It drove the Nifty index higher, contributing nearly 45 net points to the index. The stock settled at Rs 342, up nearly 6% on the NSE.

Carmaker Maruti Suzuki India gained nearly 2% to Rs 7,359 after posting a 7.6% jump in June vehicle sales on Saturday, while commercial vehicles maker Ashok Leyland (up 7% to Rs 100) climbed to its highest in a year after reporting an 11% rise in June total sales.

Shares of fertiliser makers surged after the GST Council slashed GST rate for fertilisers to 5% from 12% on Friday. Shiva Global Agro Industries surged as much as 17.8% to Rs 88 on the BSE. Chambal Fertilisers and Chemicals gained 4% while Nagarjuna Fertilizer & Chemicals and Madras Fertilizers gained more than 3%.

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