Stocks change tack after GST lift, Sensex rallies 258 points

A view of the BSE building in Mumbai. File photo   | Photo Credit:

August derivatives contracts are set to expire on August 31, which prompted liquidation of short positions.

A blockbuster start to GST brought back stock market optimism on Wednesday as the Sensex surged 258 points and the Nifty closed above 9,800 on improved risk appetite after U.S. President Donald Trump’s measured approach to the Korean flare-up.

Metal and financial stocks turned favourites, in sync with upbeat global indices after lowering of the geo-political temperature.

August derivatives contracts are set to expire on August 31, which prompted liquidation of short positions.

The July tax collections so far at ₹92,283 crore are in excess of the finance ministry’s internal estimate of ₹91,000 crore, finance minister Arun Jaitley said on August 29.

The figure is likely to go up further as and when all taxpayers file returns.

At the close, the 30-share Sensex read 31,646.46, up 258.07 points — 0.82% — as big guns RIL, ITC, HDFC, L&T and HDFC Bank advanced.

Investors’ wealth rose by ₹1,54,494 crore.

The 50-share Nifty surpassed the key 9,900-mark during the day, but gave in to pressure to take profit as it settled at 9,884.40, up 88.35 points, or 0.90%.

Shortly before the North Korean statement on its latest missile firing, Mr. Trump said “all options” were on the table, stopping short of striking a belligerent tone.

“Market recouped from the previous day loss, taking cues from positive global markets due to no further escalation in the geo-political tensions. The domestic market was also filliped by the better than anticipated tax collection under the GST regime,” said Vinod Nair, Head of Research, Geojit Financial Services.

Reliance Industries showed maximum traction, surging 2.12% to ₹1,564.15, followed by Adani Ports that rose 1.94%.

The Sensex had declined 362.43 points in the previous session on Tuesday, in line with a general weakness across the globe sparked by North Korea’s missile launch over Japan.

Domestic institutional investors (DIIs) showed support by buying shares worth ₹1,391.33 crore. Foreign portfolio investors (FPIs) turned the other way, offloading shares worth ₹1,459.64 crore on net basis on Tuesday, showed provisional data.

Metal and mining stocks hummed with buying activity, mostly on the back of hardening of the commodity price cycle in copper and other base metals.

In the metal space, stocks of JSW Steel, Jindal Steel and Power, Hindustan Zinc, Hindalco, NMDC, Vedanta, National Aluminium, Coal India, Tata Steel and SAIL were big gainers, rising by up to 4.82%.

Trading volumes, however, remained muted as floods caused by heavy rains brought Mumbai to a grinding halt on August 29, causing many people to stay home today.

Broader markets such as mid-cap and small-cap indices left the benchmarks behind, with gains of 1.49% and 1.33%, respectively.

HDFC Ltd., HDFC Bank, Hindustan Unilever and ONGC managed to keep their head above water, jumping by up to 1.83%.

In terms of BSE sectoral indices, metal took the pole position, advancing 2.64%, with oil and gas, realty and PSU staying in the green.