Sensex, Nifty50 extend gains to 3rd straight session after PM Modi’s ‘Diwali gift’ GST rate cut move

Domestic equity benchmarks jumped on Monday as the Narendra Modi 3.0 government’s proposed GST reforms sent consumption stocks soaring. Most sectors saw strong buying interest in Monday’s session as investors returned to trade after a long weekend owing to the Independence Day holiday on Friday. Globally, no negative news from a much-anticipated meeting between the American and Russian presidents in Alaska supported investor sentiment, even as there was no mention of an expected ceasefire in the ongoing war in Europe.

Closing Bell | Where Nifty 50 and Sensex stood 

The Sensex rose 676.1 points, or 0.8 per cent, to 81,273.8 while the Nifty50 added 245.7 points, or 1.0 per cent, to settle at  24,877. 

Top Nifty 50 gainers and losers

Maruti Suzuki India, Hero MotoCorp, Nestle India, Bajaj Finance, Bajaj Auto, JSW Steel and UltraTech Cement — closing between 3.7 per cent and 8.9 per cent higher — rose the most among the 38 gainers in the Nifty50 basket. 

On the other hand, ITC, Eternal, Tech Mahindra, Larsen & Toubro (L&T) and NTPC — declining between 0.9 per cent and 1.5 per cent for the day — were the top losers in the 50-blue-chip pack. 

Top Sensex movers

Among index movers, Maruti Suzuki, Bajaj Finance, Mahindra & Mahindra and HDFC Bank were the top contributors to the gains in both main gauges, whereas selling presure in ITC, L&T and Infosys played spoilsport.

Best single-day gain for Nifty Auto in at least a year; here’s how other sectoral indices fared 

The Nifty Auto — whose 15 constituents include stocks of some of the country’s automobile and auto parts makers — zoomed 4.2 per cent, its biggest single-day upmove in at least a year. Here’s a summary of how various sectoral gauges fared on NSE:  

• Nifty Auto: up 4.2 per cent 
• Nifty Consumer Durables: up 3.4 per cent
• Nifty Realty: up 2.2 pe rcent
• Nifty Metal: up 1.9 per cent 
• Nifty FMCG: up 1.2 per cent  
• Nifty Private Bank: up 1.0 per cent 
• Nifty Bank: up 0.7 per cent 
• Nifty PSU Bank: up 0.4 per cent
• Nifty Oil & Gas: up 0.2 per cent 
• Nifty Pharma: down 0.1 per cent 
• Nifty Healthcare: down 0.1 per cent 
• Nifty Media: down 0.2 per cent 
• Nifty IT: down 0.6 per cent

Midcap and smallcap stocks 

Midcap and smallcap stocks participated heavily in the overall market rally.

Among broader indices, the Nifty Midcap 100 and Smallcap 100 indices rose 1.1 per cent and 1.4 per cent, respectively. 

Overall market breadth remained in favour of the bulls throughout the strong session, with eight stocks rising for every five falling at the end of the day.

GST rate cut hopes 

The government’s proposed GST rate cuts took centre stage on Dalal Street after Prime Minister Narendra Modi announced a “big Diwali gift” in the form of new reforms in the indirect tax system in his Independence Day address to the nation. 

Global markets 

European shares began the day on a muted note, mirroring lacklustre moves in other major Asian markets, with the pan-continental Stoxx 600 trading 0.2 per cent lower at the last count. 

Dow futures were also down 0.2 per cent, suggesting a sluggish opening on Wall Street later in the day.