Equity benchmarks climbed in early trade on May 2 amid steady foreign fund inflows in April and record GST collections.
Equity benchmarks climbed in early trade on May 2 amid steady foreign fund inflows in April and record GST collections.
Besides, a largely firm trend in Asian markets and buying in Reliance Industries and IT counters added to the optimism.
The 30-share BSE Sensex climbed 276.61 points to 61,389.05 in early trade. The broader NSE Nifty rose 89.65 points to 18,154.65.
Among Sensex firms, Infosys, Larsen & Toubro, Wipro, Power Grid, Nestle, NTPC, Asian Paints, HDFC, Hindustan Unilever, Reliance Industries, Tech Mahindra and Tata Steel were the biggest gainers.
Tata Motors, Kotak Mahindra Bank and UltraTech Cement were the laggards.
In Asian bourses, Seoul, Shanghai and Hong Kong were trading in the green, while Japan declined.
On May 1, the US markets closed with a slight decline.
GST collections rose 12% year-on-year to over Rs 1.87 lakh crore in April, touching an all-time high monthly level, showed the Finance Ministry’s data released on May 1.
Manufacturing activity in India picked up further and expanded to a four-month high in April on strong new business growth, easing price pressures, better international sales and improving supply-chain conditions, a monthly survey said on May 1. has reached
“India outperformed rest of Asia and developed markets in April with a smart rally mainly due to sudden change in strategy by FIIs who became big buyers in the market in last two trading days.
VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said, “Apart from this, good corporate results, especially from the banking sector and record GST collection of Rs 1.87 lakh crore, remain bullish. The market is resilient and the undercurrent is strong.” “
According to exchange data, foreign institutional investors (FIIs) were buyers on April 28 as they bought equities worth ₹3,304.32 crore.
“Adding to the recent optimism will be the strong monthly GST numbers, which reached a new all-time high in terms of collections in April, indicating that the domestic economy remains on a strong footing despite global macroeconomic challenges,” Prashant Taapsee, said Senior VP (Research), Mehta Equities Ltd.
The stock market remained closed on Monday on account of Maharashtra Day.
The BSE benchmark had closed at 61,112.44, up 463.06 points or 0.76% on April 28. The Nifty had settled at 18,065, up 149.95 points or 0.84%.
Meanwhile, global oil benchmark Brent crude climbed 0.13% to $79.41 per barrel.