Markets gain ahead of GST meet; broader markets outperform

Broader market outperformed with BSE Midcap and BSE Smallcap up 0.65% and 1.03%, respectively

Benchmark indices recouped early losses with Sensex rising over 100 points and Nifty reclaiming 8,200 levels as investors eye the 2-day GST Council meet which starts later in the day. The council will meet the representatives of six crucial sectors, including IT, telecom, banking and insurance, to assess the implementation hurdles under the new GST regime.

Positive cues from Asian markets also aided the sentiment.

At 1:07 pm, the S&P BSE Sensex was trading at 26,663, up 73 points, while Nifty50 was ruling at 8,210, up 30 points.

Broader market continued to outperform the headline indices with BSE Midcap and BSE Smallcap up 0.65% and 1.03%, respectively.

“Brief penetration of 8235 is likely, with potential for sharp spikes towards 8250/8300, but they are less likely to sustain. Alternatively, direct rise above 8360 could set upside objective of 8580 firmly in play,” said Geojit BNP Paribas in a note.

Banking stocks pared losses today after yesterday's weakness due to lending rate cut. PNB, IndusInd Bank, YES Bank and Axis bank rose between 1.7-2.3% .

Infosys tanked 2% to Rs 980 at intra-day, making it the top loser on BSE Sensex after Vishal Sikka cautioned in a letter to his employees that the tidal wave of automation and technology-fuelled transformation could make the traditional information technology services obsolete.

Shares of state-run oil marketing companies (OMCs) gained on the bourses after they hiked the prices of subsidised cooking gas, or LPG, along with kerosene and aviation turbine fuel (ATF).

Indian Oil Corporation gained over 5%, hitting its 52-week high, while HPCL and BPCL were up 3.5% and 2.9% respectively.

Power Grid was the top gainer on BSE Sensex, up 2.3% to Rs 187.7 after the company transferred 3.06 crore shares in Power System to government. Other gainers include Axis Bank, ITC, GAIL and Coal India.

Among other stocks, CMI rallied 12% to Rs 163 on the BSE in intra-day trade, extending its previous day’s gain, after the company on Monday announced preferential issue plan to promoters.

Hero MotoCorp fell 2% at intra-day to Rs 2966 after the two-wheeler major reported 33.91% dip in its total sales in December 2016 at 3,30,202 units as against 4,99,665 units in the same month previous year.