BSE Sensex rises on tax reform hopes, global rally

Reuters Market Eye - The BSE Sensex and Nifty rose on Thursday, helped by the cabinet's approval of a bill on a nationwide goods and services tax (GST) and tracking a rally in Asian peers.

"GST is the third big game changer for India after Modi's landslide election win and tumbling crude oil," said Vijay Kedia, managing director at Kedia Securities Pvt Ltd.

Gains also tracked a rally in Asian shares after U.S. stocks enjoy their strongest session this year when the Federal Reserve sounded upbeat on the economy and promised to be patient in removing policy stimulus.

The 30-share Sensex rose 1.43 percent while the Nifty gained 1.39 percent as of 1:27 p.m. Both indexes were heading towards snapping their five-day losing streak.

 

Blue chips led the gains.

ICICI Bank was up 3.1 percent while Larsen and Toubro gained 2.3 percent.

ITC gained 0.6 percent on reports that tobacco was included in GST.

(Reporting by Abhishek Vishnoi)