Fading chances of a US Fed rate hike continued to boost Indian shares as the benchmark BSE Sensex rose for the fifth straight session by jumping 147.33 points while investor sentiment also gained strength from Narendra Modi's statement that the GST will be rolled out as planned.
Addressing Indian and German business leaders, Prime Minister Narendra Modi today expressed hope that the Goods and Services Tax (GST) will be rolled out in 2016.
He also said the government has taken decisive steps to remove long pending concerns of investors.
Finance Ministry's statement that the government will play its part to ensure that benefits of falling interest rates are transmitted to the economy at large also helped.
However, gains were muted because of profit-booking in IT, teck banking and power stocks after a survey showed that country's services sector activity eased last month.
Nikkei India Composite PMI Output Index that maps both the manufacturing and services sectors fell from 52.6 in August to 51.5 in September.
But consistent buying helped the market to end in the green. The BSE barometer has now gathered 1,316.04 points in five sessions and stands at a fresh one and a half months high of 26,932.88, a level last seen on August 21.
"Sentiments... Gained strength from the statements made by the Finance Minister and the Prime Minister sharing their views on growth rate and roll out of major reforms like GST as planned," said Jayant Manglik President Retail Distribution at Religare Securities.
The BSE Sensex resumed higher at 26,976.66 and firmed up further to a day's high of 27,010.27 before ending at 26,932.88 -- showing a gain of 147.33 points or 0.55 per cent.
The NSE 50-share Nifty firmed up further by 33.60 points or 0.41 per cent to 8,152.90.
From the Sensex pack, Tata Motors remained the top gainer for the second day with a surge of 5.81 per cent to Rs 333.50 on sales data for September and reports that Jaguar Land Rover's US unit sales soared.
"Bounce back in commodity prices, expectation of good corporate quarterly results and renewed buying interest by foreign portfolio investors boosted the street's confidence," said Gaurav Jain Director of Hem Securities.
In line with broad trend, small-cap index rose 0.69 per cent and mid-cap was up 0.31 per cent.
