Sensex edges up as GST bill makes headway

Mumbai: Equities staged a moderate recovery on July 27, with the BSE Sensex rising by 48 points to recapture the 28,000-mark as the Centre and states reached a broad consensus on key issues in the long-pending GST bill amid caution ahead of outcome of the Federal Reserve meet.

It also helped that Asian and European markets rallied on expectations of a stimulus from Bank of Japan. Covering-up of short positions ahead of tomorrow's July month expiry in derivatives segment, too gave equities a push.

Country's largest mortgage player HDFC Ltd jumped 1.48 per cent to Rs 1,387.80 after it reported a 26.86 per cent rise in consolidated net profit to Rs 2,796.92 crore helped by receipts from stake sale in general insurance arm.

Drug major Dr Reddy's Laboratories extended yesterday's weakness and plunged further by 10.07 per cent to Rs 2,988.40 after 80 per cent fall in consolidated net profit. Making headway on the long-pending GST bill, the Centre and states have agreed on the principle that the tax rate will be lower than the current levels.

"With state finance ministers meet on GST improving the potential for a consensus, Indian stocks recouped yesterday's losses. However, earnings so far having failed to enthuse markets," said Anand James, Chief Market Strategist, Geojit BNP Paribas Financial Services.

Meanwhile, the Fed is due to conclude a two-day meeting later in the day and the BoJ will meet on Friday. On the day, after moving both ways during the session, the BSE Sensex settled 47.81 points or 0.17 per cent higher at 28,024.33.

The NSE Nifty ended at 8,615.80, a gain of 25.15 points or 0.29 per cent after shuttling between 8,665 and 8,572.05. Global markets edged up after media reports suggested that Japanese Prime Minister Shinzo Abe plans to unveil a stimulus plan worth over 28 trillion yen, days before the central bank is expected to unveil its own growth-boosting measures.

From Asia, Japan's Nikkei ended 1.72 per cent higher, while indices like Hong Kong, Singapore and Taiwan moved up by up to 0.43 per cent. However, China and South Korea based shares fell 0.11 per cent to 1.91 per cent. Key European indices in countries like France, Germany and UK rose between 0.28 per cent and 1.44 per cent.

In the domestic market, of the 30-stock Sensex pack, 17 registered gains. Major gainers included ICICI Bank (3 per cent), Adani Ports (1.83 per cent), Maruti Suzuki (1.64 per cent), Tata Motors (1.38 per cent), Lupin (1.12 per cent), TCS (1.09 per cent), Sun Pharma (1.02 per cent), SBI (0.95 per cent) and Bharti Airtel (0.87 per cent).

However, major losers were ITC 1.51 per cent, Tata Steel 1.29 per cent, RIL 1 per cent and Axis Bank 0.90 per cent. Among the BSE sector and industry indices telecom rose by 1.26 per cent followed by finance 0.93 per cent, bankex 0.89 per cent, auto 0.71 per cent, industrials 0.70 per cent, metal 0.60 per cent and capital goods 0.50 per cent while healthcare fell 0.75 per cent followed by FMCG 0.51 per cent, energy 0.39 per cent and consumer durables 0.23 per cent. Broader markets fared better, with mid-cap and small-cap indices rising up to 0.60 per cent.

The market breadth remained negative as 1,342 ended lower, 1,316 closed higher while 207 ruled steady. The total turnover fell to Rs 3,487.26 crore from Rs 4,138.75 crore yesterday.