Published: Tue, May 23, 2017
Markets | By Lucia Cruz

Indian shares end higher; consumer stocks surge

Indian shares end higher; consumer stocks surge

"Consumer stocks are gaining on the back of GST tax rates, which have been broadly in favour of FMCG stocks", Dharmesh Kant, head of retail research at Motilal Oswal Securities Ltd told Reuters. The BSE 30-share Sensex resumed on a positive note and touched the day's high of 30,712.15 but it shed some gains on profit-booking and hit a low of 30,516.87 before settling at 30,570.97, up 106.05 points.

The benchmark BSE Sensex rose 106.05 points or 0.35 percent to 30,570.97, snapping a two-session losing streak, after the government said it expects inflation to fall by 2 percent on implementation of the goods and services tax (GST).

The NSE 50-share Nifty index opened higher at 9,480.25 and hovered between 9,498.65 and 9,427.90 before finishing at 9,438.25, a modest rise of 10.35 points, or 0.11 per cent. The index had gained 30 points on May 19.

The wider 51-scrip Nifty of the National Stock Exchange (NSE) was also trading 61.05 points or 0.65 per cent higher at 9,488.95 points.

Meanwhile, foreign portfolio investors (FPIs) sold shares worth a net Rs 988.70 crore last Friday, as per provisional data from the stock exchanges.

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In the Asian region, the key indices such as Hong Mong's Hang Seng rose 0.86 per cent, Japan's Nikkei by 0.45 per cent, while Shanghai Composite finished 0.48 per cent.

Crude oil prices rose on Monday, supported by reports that an Opec-led supply cut may not only be extended into next year but might also be deepened to tighten the market and prop up prices.

However, the BSE market breadth was bearish - with 1,462 declines and 1,042 advances. London's FTSE was up 0.39 per cent.

Stocks such as ITC have found favor with investors since the Goods and Services Tax council last week agreed on lower rates of between 5%-18% for several consumer products under the new Goods and Services tax. "Broad market indices like the BSE mid-cap and small-cap indices fell more, thereby underperforming the Sensex". ITC, which is among the stocks with the biggest weight in the Sensex, jumped 6.2% to a record 303.65 rupees.

Laggards on the bourses were: SBI 4.46 per cent, Lupin 3.95 per cent, Gail 2.48 per cent, Bajaj Auto 1.98 per cent, M&M 1.95 per cent, Sun Pharma 1.87 per cent, Dr Reddy's 1.82 per cent and Power Grid 1.82 per cent.

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