Indices rebound on record GST collections, positive manufacturing data

Stock markets rebounded on Thursday with benchmark Sensex closing higher by 128 points as record GST collections in April, positive manufacturing data, and foreign fund inflows boosted investor sentiment.

The 30-share BSE Sensex climbed 128.33 points or 0.17 per cent to settle at 74,611.11 in a restricted trade. During the day, the index rose by 329.65 points or 0.44 per cent to a high of 74,812.43.

The NSE Nifty rose by 43.35 points or 0.19 per cent to 22,648.20 as 29 of its constituents advanced and 21 declined.

 

From the Sensex basket, Power Grid, Asian Paints, Tata Motors, Tata Steel, NTPC, Sun Pharma, Mahindra & Mahindra, HDFC Bank, Tata Consultancy Services and JSW Steel were among the major gainers.

Kotak Mahindra Bank was the biggest loser, dropping 2.95 per cent after the bank announced the exit of its joint managing director KVS Manian.

ICICI Bank dropped a little over 1 per cent. India's second-largest private lender rejected a media report that suggested that its MD and CEO was willing to step down.

Bharti Airtel, Axis Bank, Wipro and IndusInd Bank were among the laggards.

"Benchmark indices saw moderate gains, mirroring global trends after the US FED decided to maintain its interest rate, as widely accepted. The US central bank hinted at potential rate cuts while remaining cautious about sustaining the high inflation trend," Vinod Nair, Head of Research, Geojit Financial Services said.

The broader market largely traded range-bound, while positive commentary from the auto companies on recent volume numbers led the sector to outperform, Nair added.

Goods and Services Tax collections grew 12.4 per cent to a record high of Rs 2.10 lakh crore in April, aided by strong economic momentum and increased domestic transactions and imports, the Finance Ministry said on Wednesday.

"Trading in the markets remained lacklustre, closing marginally higher amid a blend of signals. The Nifty commenced positively but remained confined to a narrow range throughout the day, eventually settling at 22,648.20 on the weekly expiry day. Global cues presented a mixed picture, contributing to subdued sentiment, albeit with an overall positive undertone," said Ajit Mishra – SVP, Research, Religare Broking Ltd.

In the broader market, the BSE midcap gauge climbed 0.91 per cent and smallcap index advanced 0.29 per cent.

Among the indices, utilities rallied by 1.49 per cent, power by 1.47 per cent, services by 1.24 per cent, auto by 1.17 per cent, metal by 1.03 per cent, consumer discretionary by 0.82 per cent, energy by 0.61 per cent and healthcare by 0.31 per cent.

Teck, realty, telecommunication and bankex were the laggards.

India's manufacturing sector activity moderated in April but still recorded the second fastest improvement in operating conditions in three-and-a-half years supported by buoyant demand, a monthly survey said on Thursday.

The seasonally adjusted HSBC India Manufacturing Purchasing Managers' Index (PMI) fell from 59.1 in March to 58.8 in April, signalling the second-best improvement in the health of the sector for three-and-a-half years.

In Purchasing Managers' Index (PMI) parlance, a print above 50 means expansion while a score below 50 denotes contraction.

In Asian markets, Hong Kong settled with gains while Seoul, Tokyo and Shanghai ended lower. European markets were trading on a mixed note. Wall Street ended mixed on Wednesday.

Global oil benchmark Brent crude climbed 1.02 per cent to USD 84.29 a barrel.

Foreign Institutional Investors (FIIs) bought equities worth Rs 1,071.93 crore on Tuesday, according to exchange data.

Domestic equity markets were closed on Wednesday on account of Maharashtra Day.
 

Snapping its two-day winning run, the BSE benchmark declined 188.50 points or 0.25 per cent to settle at 74,482.78 on Tuesday. The NSE Nifty dipped 38.55 points or 0.17 per cent to finish at 22,604.85.