GST buoys markets; Sensex gains 92 points

Mumbai, Nov 27 (IANS) Efforts to get a key economic legislation passed during the winter session of parliament cheered the Indian equity markets during the mid-afternoon trade on Friday.

Initially, both the bellwether indices of the Indian equity markets opened on a higher note, supported by hopes of a stimulus package in European Union.

A better-than-expected roll-over rate after Thursday’s derivatives expiry also supported markets’ gains.

However, initial gains were capped over concerns regarding the output of the winter session of parliament and weakening rupee.

The barometer 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE) gained 92 points or 0.35 percent.

Similarly, the wider 50-scrip Nifty of the National Stock Exchange (NSE) made gains during the mid-afternoon session. It was higher by 29 points or 0.36 percent at 7,912.30 points.

The S&P BSE Sensex, which opened at 26,003.20 points, was trading at 26,050.44 points (at 1.45 p.m.) — 92 points or 0.35 percent up from the previous day’s close at 25,958.63 points.

The Sensex so far has touched a high of 26,125.63 points and a low of 25,937.32 points during the intra-day trade.

Analysts said that markets made gains on the back of increased hopes that the Goods and Services Tax (GST) Bill will get passed during the winter session of parliament.

“Expectations that the government will be able to build consensus over the GST bill and get it passed supported markets’ gains,” Anand James, co-head, technical research desk with Geojit BNP Paribas Financial Services, told IANS.

The government needs to pass the GST bill in this session to meet the April 1, 2016, roll-out deadline.

“The reasonably good roll-over (numbers) after yesterday’s expiry added to the positive momentum which helped prices rise,” James added.

The better-than-expected roll-over rate during the derivatives expiry restored investors’ confidence.

The reasonably healthy roll-over rate was achieved despite the reduction in lot size in futures and options (F&O) segment by the Securities and Exchange Board of India (SEBI).

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