Benchmarks bounce back in a volatile session

Optimism around GST Council deliberations on consumption-boosting tax cuts also lifted FMCG, autos and durables, while easing India VIX signalled lower volatility - Gaurav Garg, Analyst, Lemonn Markets Desk

Mumbai: Benchmark equity indices Sensex and Nifty closed higher in a volatile session on Wednesday, driven by a rally in metal stocks and optimism related to the GST Council meeting.

After oscillating between highs and lows, the 30-share BSE Sensex jumped 409.83 points or 0.51 per cent to settle at 80,567.71. During the day, the benchmark hit a high of 80,671.28 and a low of 80,004.60, gyrating 666.68 points. The 50-share NSE Nifty climbed 135.45 points or 0.55 per cent to 24,715.05.

The GST Council is meeting in New Delhi for two days to discuss the proposed pruning of tax rates to 5 per cent and 18 per cent. Among Sensex firms, Tata Steel jumped the most by 5.90 per cent. Titan, Mahindra & Mahindra, ITC, Eternal, State Bank of India, and Trent were among the other gainers. However, Infosys, NTPC, Hindustan Unilever, TCS, Adani Ports and Bharti Airtel were among the laggards. Indian equities closed higher after a mixed start to the session, buoyed by expectations of a consumption-led stimulus from the potential GST slab rationalisation.

“In the near term, market sentiment hinges on the outcome of the GST Council meeting with traction on consumption-oriented stocks and sectors,” Vinod Nair, Head of Research, Geojit Investments Limited, said.

The BSE smallcap gauge jumped 0.90 per cent and midcap index climbed 0.63 per cent. Among BSE sectoral indices, metal surged the most by 3.08 per cent, followed by commodities (1.53 per cent), healthcare (1.20 per cent), consumer discretionary (0.80 per cent), financial services (0.73 per cent), bankex (0.71 per cent) and auto (0.71 per cent). IT, teck, BSE Focused IT and utilities were the laggards. As many as 2,624 stocks advanced while 1,484 declined and 162 remained unchanged on the BSE.

“Markets staged a sharp recovery with the Sensex rebounding from day’s lows and Nifty reclaiming 24,700, powered by a strong rally in metal stocks. Tata Steel, SAIL, Jindal Steel and Hindustan Copper led the charge as China’s supply curbs and a weaker dollar boosted sentiment. “Optimism around GST Council deliberations on consumption-boosting tax cuts also lifted FMCG, autos and durables, while easing India VIX signalled lower volatility,” Gaurav Garg, Analyst, Lemonn Markets Desk, said.