Hopes on GST lift market indices

October 18, 2016 11:07 pm | Updated November 17, 2021 06:28 am IST - MUMBAI:

Indian indices posted their biggest gain in almost five months, helped by strong global cues and expectations of a breakthrough at a crucial GST council meeting. Financial blue-chips ICICI Bank, HDFC and Axis Bank led the rally.

The 30-share Sensex rose 520.91 points, or 1.89 per cent, to close at 28,050.88.

The broader 50-share Nifty ended the day at 8,677.90, up 157.50 points, or 1.85 per cent. This is the biggest single-day gain for the indices since May 25.

Global markets also saw strong trading on Tuesday with the Hang Seng gaining more than 1.5 per cent and the Nikkei and Kospi also ending in positive territory.

“The low inflation and expectations of further easing by the Reserve Bank of India has changed the sentiment in the market,” said Vaibhav Agrawal, Vice President & Head of Research, Angel Broking.

“Overall, we see a strong market going forward as festive demand remains solid,” he added.

Expectations of a breakthrough in the Goods and Services Tax (GST) regime also acted as a catalyst. A three-day meet of the GST Council began on Tuesday.

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