GST effect? Sensex closes 410 points higher, Nifty up 135 points as stock markets look forward to tax reforms

The positive sentiments surrounding the ongoing 56th Goods and Services Tax (GST) Council meeting, along with a rally in metal stocks, led to the benchmark market indices, Sensex and Nifty, closing higher on Wednesday.

The GST Council, headed by Union Finance Minister Nirmala Sitharaman, convened its two-day meeting on Wednesday, as it mulls implementing a two-slab system and rate cuts across the board ahead of the festival season.

A recent Finance Ministry update revealed the potential move to a simplified tax system and other measures. Read about it HERE.

The markets opened with a dip and saw a rather volatile trading day. However, the Sensex regained its ground and closed 409.83 points higher at 80,567.71 while the 50-pack Nifty climbed 135.45 points to a 24,715.05 close.

ALSO READ | GST Council meeting today: List of things that could get cheaper or expensive

Metal stocks gained in the day, with Tata Steel leading the Sensex with a 5.9 per cent jump. Other gainers included Titan, Mahindra & Mahindra, ITC, Eternal, SBI, and Trent. The S&P BSE Metal Index gained 3 per cent for the day.

India’s top IT firms Infosys and TCS were among the laggards, along with NTPC, Hindustan Unilever, Adani Ports, and Airtel.

”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 of Geojit Investments told agencies.

Business