Sensex snaps two-day losing streak, ends 183 points up on GST hopes; Dr Reddy’s slumps, Tata Motors gains

The BSE Sensex and NSE Nifty snapped two day losing streak on Thursday and closed 182.89 points and 52.20 points up at 25,958.63 and 7,883.80, respectively. Benchmark indices rose on hopes that the Parliament would consider a key reform on goods and services tax (GST) and some short coverings also uplift market mood on the last day of F&O expiry.

In the 50-share index, Tata Motors, Sun Pharma, Idea Cellular, GAIL and Reliance Industries gained between 2.35 per cent and 5.50 per cent. On the other hand, Dr Reddy’s, Tech Mahindra, TCS, Adani Ports and Bajaj Auto slid between 0.70 per cent and 8.30 per cent.The BSE Sensex and NSE Nifty snapped two day losing streak on Thursday and closed 182.89 points and 52.20 points up at 25,958.63 and 7,883.80, respectively. Benchmark indices rose on hopes that the Parliament would consider a key reform on goods and services tax (GST) and some short coverings also uplift market mood on the last day of F&O expiry.

Barring the BSE Healthcare index (down 0.53 per cent) and BSE Capital Goods index (down 0.23 per cent), rest all other indices ended in green. The BSE Telecom index and BSE Realty index gained 2.66 per cent and 1.8 per cent, respectively.

Hopes for the GST tax were rising as the idea of setting a relatively low rate for a new Indian sales tax seemed to be gaining traction, as politicians of all stripes met to debate what would be the country’s biggest tax reform since independence.

The bill has passed the lower house of parliament, but has been blocked in the upper house. Legislators started their winter session on Thursday, which will continue until December 23.

Gaurav Jain, director, Hem Securities, said, “Indices shut the expiry day on a firm note aided by short covering. The market extended rally in afternoon trade on positive global cues and hopes of likely passing of GST Bill. A rally in commodity prices worldwide also supported the upbeat of the indices.”

Vinod Nair, head, fundamental research, Geojit BNP Paribas Financial Services, said, “Market momentum gained on the expiry day as the optimism increased about the GST bill being passed in the upper house. On the other hand, European market has gained with expectation of further easing by the ECB at the next week policy meet.”

Logistics company Gati Ltd gained 5.90 per cent on hopes of GST being cleared.

Drug major Sun Pharmaceutical Industries rose 4.11 per cent after the company on Wednesday said its unit would not go ahead with a wind energy project in the United States.

Hero MotoCorp fell as much as 1.34 per cent in the early trade but closed 1.52 per cent up after the US private equity firm Bain Capital sold stake in the company.

However, Dr Reddy’s Laboratories fell over 8 per cent after the US Food and Drug Administration released details of its warning letter issued to the drugmaker earlier in November.

European markets were trading higher, UK’s FTSE 100 was up by 26.56 points or 0.42 per cent to 6,364.20, France’s CAC gained 35.29 points or 0.72 per cent to 4,928.28 and Germany’s DAX increased by 141.89 points or 1.27 per cent to 11,311.43.

The FIIs were net sellers in the cash market segment on 24 November 2015, Tuesday sold shares worth Rs 540.12 crore. The DIIs on the other hand were net buyers on 24 November, bought shares worth Rs 532.13 crore in the capital markets segment.

The Asian markets made mostly a positive close on Thursday, ahead of the Thanksgiving holiday in the US. Chinese stocks fell on worries a spate of IPO’s next week may drain funds from the secondary market, while the Hang Seng markets giving up the gains ended flat. Although some of the indices in the region made a lower close but the Japanese market despite coming off the day’s high, closed just shy of the 20,000 mark, extending a two-month rally spurred by a weakening Japanese yen. The expectations the US Federal Reserve will raise interest rates in December has pushed the yen weaker. Seoul shares too rose sharply amid foreign fund buying in undervalued blue-chips, while Taiwan Weighted rallied 1.2 percent.