Indian benchmark indices welcomed the new tax regime, Goods and Services Tax (GST), with a strong performance today as FMCG stocks and automobile stocks soared on the back of benefits from GST.
BSE Sensex gained 300 points or 0.97 per cent to end the day at 31,221.62 points while NSE Nifty, the broader gauge, gained 94.10 points or 0.99 per cent to close at 9,615.00 points. BSE Mid-cap index closed 164.89 points or 1.13 per cent higher at 14,809.37 points while BSE Small-cap index closed 162.14 points or 1.05% higher at 15,572.66 points.
Cigarette maker ITC was the top gainer among the BSE Sensex stocks, gaining 5.70 per cent to close at Rs 342.30, a fresh 52-week high. This rise in ITC’s stock price was mainly on the back taxation for cigarettes under GST being about five to six per cent lower than the previous tax structure. this difference in tax incidence also proved beneficial for other cigarette stocks such as VST Industries and Godfrey Phillips, which also gained 3.97 per cent and 1.93 per cent, respectively.
The Nifty FMCG index gained 1,035.15 or 3.87 per cent to close at 27,787.20 points. Jubilant Foods, the top gainer among the index components, gained Rs 59.60 or 6.30 per cent to close at Rs 1,006.00.
The Nifty Auto index gained 140.70 points or 1.33 per cent to close at 10,680.95 points. Ashok Leyland, the top gainer on the auto index, gained Rs 6.70 or 7.14 per cent to close at Rs 1,00.55 on the back of India’s leading medium and heavy commercial vehicles manufacturing company reporting an 11 percent growth in overall sales for the month of June.
The company’s sale of light commercial vehicles (LCV) rose 29 percent to 3,128 units in June 2017 compared to June 2016, while the sale of medium & heavy commercial vehicles (M&HCV) rose 6 percent to 9,202 units in June 2017 in comparison to June 2016. The stock also made a new 52-week high of Rs 101.40 during intraday trade today.