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Sensex, Nifty march ahead on GST progress, rise in Asian shares

LiveMint logoLiveMint 22-05-2017 Ami Shah

Mumbai: Benchmark equity indices traded higher on Monday afternoon, in line with the rally in their Asian peers, and continuous inflows into Indian shares as investors gave a thumbs up to the ongoing reforms development.

At 12:03pm, BSE’s 30-share Sensex was up 0.47% at 30,608.18 points, while National Stock Exchange’s 50-share Nifty was up 0.31% at 9,457.30 points.

Earlier in the day, Sensex rose as much as 0.81% or 247.23 points to 30,712, while Nifty climbed as much as 0.75% or 70.75 points to 9,498.65.

The rates for goods and services tax (GST) were announced on Friday, The tax reform is touted as the biggest one since India achieved Independence in 1947.

“The step ahead on implementation of GST, and a rally in Asian shares are helping our markets today,” said Deven Choksey, group managing director at KR Choksey Investment Managers Pvt. Ltd.

“Sustained flow of money from both foreign and domestic investors is supporting the rally,” added Choksey.

Foreign institutional investors or FIIs have pumped in $819.82 million so far in May in Indian shares, while their domestic counterparts have invested a net of Rs1,974.49 crore in Indian equities so far this month.

ITC rose as much as 5.05% to a record high of Rs300.35 a share. At 12.22pm, the ITC stock traded at Rs300, up 4.93% while the benchmark index Sensex traded at 30,604.90, up 0.46%.

According to Choksey, the FMCG companies will see an improvement in margins due to input credit advantage under GST.

The main beneficiaries under GST, which is set to be implemented on 1 July, include steelmakers and some consumer goods.

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