Sensex opens 100 pts higher after GST Council cuts rates

The benchmark BSE Sensex advanced over 100 points in early trade on Monday led by gains in FMCG stocks after the GST Council on Saturday cut rates on over 100 items, amid fresh capital inflows by foreign funds and strengthening rupee.

The 30-share index was trading higher by 114.10 points, or 0.31 per cent, at 36,610.47. All the sectoral indices, led by FMCG, consumer durables and power stocks were trading in the positive zone, rising up to 1.21 per cent. The gauge had gained 145.14 points in the previous session.

The NSE Nifty too rose by 42.60 points, or 0.39 per cent, to 11,052.80. Top gainers include Asian Paint, ITC, Bharti Airtel, NTPC, Adani Ports, Coal India, ICICI Bank, Sun Pharma, L&T, Axis Bank, Yes Bank, SBI and Vedanta, gaining up to 3.77 per cent.

Brokers said investor sentiment got a boost after the GST Council, on Saturday, cut rates on over 100 items, including footwear, refrigerator, washing machine and small screen TV, while the widely demanded sanitary napkins have been exempted from the levy.

The revised tax rates will come into effect from July 27. Meanwhile, the rupee surged by 19 paise to quote at 68.65 against the dollar at the forex market in early trade on Monday.

However, other Asian markets were trading mixed after the Bank of Japan offered to buy bonds at the first fixed-rate operation since February, in a sign the central bank was trying to rein yields.

Japan’s Nikkei was down 1.27 per cent, Hong Kong’s Hang Seng shed 0.09 per cent in early trade today, while Shanghai Composite edged 0.37 per cent higher. The US Dow Jones Industrial Average ended 0.03 per cent down on Friday.