Indian shares gain for third session; ITC climbs on GST boost

Sentiment across Asia was, however, muted at the start of the holiday shortened week in the U.S.

india trader
Trader at a local brokerage in Mumbai, India. Reuters

Indian shares surged on Monday, posting their third straight session of gains, led by consumer goods firm ITC amidst hopes of improved sales after the nation adopted new tax regime under the goods and services tax (GST).

The benchmark S&P BSE Sensex climbed 0.97 percent at 31,221 while the Nifty jumped 0.99 percent at 9,615.

India embraced a new tax reform known as GST, which seeks to bring in transparency and efficiency and was welcomed as positive for India's sovereign credit profile by rating agency Moody's Investors Service.

Sentiment across Asia was, however, muted at the start of the holiday shortened week in the U.S.

The MSCI Asia Pacific Index was little changed after the gauge finished the second quarter with a gain of 5.2 percent.

Back home, shares in fertilizer companies gained after the government slashed the GST rate on fertilizer to 5 percent from 12 percent earlier.

Nagarjuna Fertilizers rose 3.8 percent, Gujarat State Fertilizers climbed 7.5 percent, National Fertilizers advanced 3.6 percent while Zuari Agro Chemicals gained 1.4 percent.

Fast moving consumer goods, discretionary goods, metal and auto indexes were the top performer.

Biscuit maker ITC jumped 6.1 percent while cigarette maker Godfrey Phillips advanced 2 percent.

Among the miners, shares of Hindalco Industries, Jindal Steel and NMDC gained between 3 to 5 percent.

Carmaker Maruti Suzuki rose 1.8 percent after its passenger vehicles sales in June in the domestic market rose marginally 1 percent to 93,057 units over a year ago period.

Market breadth was in the favour of gainers, with about 3 stocks advancing to every 1 stock that declined.

india trader
Trader at a local brokerage in Mumbai, India. Reuters

Indian shares surged on Monday, posting their third straight session of gains, led by consumer goods firm ITC amidst hopes of improved sales after the nation adopted new tax regime under the goods and services tax (GST).

The benchmark S&P BSE Sensex climbed 0.97 percent at 31,221 while the Nifty jumped 0.99 percent at 9,615.

India embraced a new tax reform known as GST, which seeks to bring in transparency and efficiency and was welcomed as positive for India's sovereign credit profile by rating agency Moody's Investors Service.

Sentiment across Asia was, however, muted at the start of the holiday shortened week in the U.S.

The MSCI Asia Pacific Index was little changed after the gauge finished the second quarter with a gain of 5.2 percent.

Back home, shares in fertilizer companies gained after the government slashed the GST rate on fertilizer to 5 percent from 12 percent earlier.

Nagarjuna Fertilizers rose 3.8 percent, Gujarat State Fertilizers climbed 7.5 percent, National Fertilizers advanced 3.6 percent while Zuari Agro Chemicals gained 1.4 percent.

Fast moving consumer goods, discretionary goods, metal and auto indexes were the top performer.

Biscuit maker ITC jumped 6.1 percent while cigarette maker Godfrey Phillips advanced 2 percent.

Among the miners, shares of Hindalco Industries, Jindal Steel and NMDC gained between 3 to 5 percent.

Carmaker Maruti Suzuki rose 1.8 percent after its passenger vehicles sales in June in the domestic market rose marginally 1 percent to 93,057 units over a year ago period.

Market breadth was in the favour of gainers, with about 3 stocks advancing to every 1 stock that declined.

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