Sensex Finishes Strong Post GST Rollout; FMCG, Auto Stocks Rally

Mon, 3 Jul Closing

   Previous Close   

   Pre-Open   

   09:30 am   

   11:30 am   

   01:30 pm   

Indian share markets continued to soar in the afternoon session amid firm global markets and headed for third straight session of gains on hopes of newly implemented goods and services tax (GST).

At the closing bell, the BSE Sensex stood higher by 300 points, while the NSE Nifty finished up by 94 points. Meanwhile, the S&P BSE Mid Cap & the S&P BSE Small Cap finished up by 1.1% and 1% respectively. Gains were largely seen in metal stocks, realty stocks, auto stocks and FMCG stocks.

Asian stock markets finished higher today with shares in Japan leading the region. The Nikkei 225 is up 0.11% while China's Shanghai Composite is up 0.11% and Hong Kong's Hang Seng is up 0.08%. European markets are broadly higher today with shares in France leading the region. The CAC 40 is up 1.04% while Germany's DAX is up 0.70% and London's FTSE 100 is up 0.44%.

The rupee was trading at Rs 64.75 against the US$ in the afternoon session. Oil prices were trading at US$ 46.02 at the time of writing.

Ashok Leyland share price soared 6.9% after the auto major reported 11% rise in sales at 12,330 units against 11,108 units sold in the same month last year.

Meanwhile, with two-wheelers and sport-utility vehicles attracting lower tax rates under the Goods and Services Tax, more automakers announced passing on the benefit to the customers and slashed their vehicle prices.

The two-wheeler major TVS Motor Company cut prices of its models by up to Rs 4,150. Maruti Suzuki and luxury automakers Jaguar Land Rover, Mercedes Benz, Audi India and BMW had already announced reduction in their car prices on July 1, in the range of 3% to 12%.

FMCG stocks finished the day up by 3.4% with Godrej consumer share price and ITC share price leading the gainers. ITC share price gained as much as 6% today to become the fourth Indian company to cross market capitalization of Rs 4 trillion as investors continued to buy the stock after the government notified that cigarettes will be exempted of additional excise duty under the goods and services tax (GST) regime.

According to the notification issued by the central excise department, basic excise duty and additional excise duty are repealed and only national calamity duty is continuing under the GST regime for cigarettes (subscription required).

Reportedly, net realisation for ITC's portfolio can increase by 7% (with the same pricing) with tax savings of Rs 0.25 per stick in the GST regime.

The tax savings in the GST regime is mainly on account of removal of multi-layer tax regime. Earlier VAT was levied on excise duty, while GST now will not be applicable on Cess.

Additionally, specific tax share in GST regime is higher compared to VAT, which gives companies like ITC a competitive advantage.

Moving on to the news from the economy. Signaling weaker improvement in the health of the sector, manufacturing activity in India fell to a four-month low in June amid softer rise in factory new orders.

The seasonally adjusted Nikkei India Manufacturing Purchasing Managers' Index (PMI)-a composite single-figure indicator of manufacturing performance-slipped to 50.9 in the month of June as against 51.6 in the month of May.

According to the survey data, the challenging economic conditions, water shortages and the implementation of the GST hampered on the growth of the sector.

Further, payroll numbers and purchasing activity witnessed marginal increment in the month of June. The survey also pointed that ongoing growth of buying levels, though the rate of expansion has softened from May.

In the month of June, input costs continued to increase, however, the rate of inflation was modest and the weakest since August 2016. Similarly, output charges rose only slightly, at a below-trend pace.

While the new tax system is anticipated by some firms to generate more business, others expect the GST will have a negative impact on their businesses. With the impact of demonetisation largely over and GST unlikely to substantially derail consumer spending, the IHS Markit forecasted real GDP growth to hit 7.3% for 2017-18.

Airline stocks finished the day on a mixed note with Interglobe Aviation share price and Jet Airways share price leading the gains.

A Good Year For Aviation Stocks

2017 started off on a brilliant note for aviation stocks. Crude prices had crashed. And lower cost of air turbine fuel suddenly changed the economics of the aviation business. In India, fuel costs account for a lion's share of operating expenses for companies like Spicejet and Jet Airways. Lower costs therefore meant the possibility of the companies reporting profits at least at the operating level. The stock of Spicejet, in particular, soared on the expectations of a turnaround in profitability.

To add to that, Buffett did something in the last quarter of 2016 that Buffett aficionados would consider unimaginable. He poured upwards of US$ 2 billion a piece into the four largest US airline stocks - American Airlines Group Inc, Delta Air Lines Inc, Southwest Airlines Co, and United Continental Holdings Inc. This took his total investments in these companies to a mammoth US$ 9.2 billion as of December 2016.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

Read the latest Market Commentary

Top Gainers TodayTop Gainers over 1-WeekTop Gainers over 1-MonthTop Gainers over 1-YearTop Gainers over 3-YrsTop Gainers over 5-YrsTop Losers TodayTop Losers over 1-WeekTop Losers over 1-MonthTop Losers over 1-YearTop Losers over 3-YrsTop Losers over 5-YrsOnly BuyersOnly SellersMost Active StocksMost Popular Stocks52 Week High Stocks52 Week Low Stocks

INDICESBSE (Rs 0 to 1)BSE (Rs 1 to 2)BSE (Rs 2 to 4)BSE (Rs 4 to 10)BSE (Rs 10 to 20)BSE (Above Rs 20)BSE - AllBSE-30BSE-100BSE-200BSE-500BSE AutoBSE BankexBSE Capital GoodsBSE Consumer DurablesBSE FMCGBSE HealthcareBSE ITBSE MetalBSE Oil & GasBSE PSUBSE TeckBSE RealtyBSE PowerBSE A GroupBSE B GroupBSE Mid-CapBSE Small-CapBSE Basic MaterialsBSE Consumer DiscretionaryBSE IndustrialsBSE UtilitiesBSE Sensex 50BSE Sensex Next 50BSE Bharat 22BSE 150 MidCapBSE 250 SmallCapBSE 250 LargeMidCapBSE 400 MidSmallCapBSE AllCapBSE LargeCapBSE SmallCap SelectBSE 100 LargeCap TMCBSE InfraBSE ManufacturingBSE CPSEBSE Private BankBSE Diversified FinancialsBSE MomentumBSE Low VolatilityBSE QualityBSE Enhanced ValueBSE Divident StabilityS&P BSE IPOBSE SMEIPOBSE 100 ESGBSE CarbonexBSE GreenexNSE (Rs 0 to 10)NSE (Rs 10 to 20)NSE (Above Rs 20)NSE - AllNSE-50NSE ITNSE Nifty Midcap 50NSE JR. NiftyNSE Bank NiftyNIFTY Next 50NIFTY 100NIFTY 200NIFTY 500NIFTY MidCap 100NIFTY SmallCap 250NIFTY SmallCap 50NIFTY SmallCap 100NIFTY LargeMidCap 250NIFTY MidSmallCap 400NIFTY AutoNIFTY Consumer DurablesNIFTY FinanceNIFTY FMCGNIFTY MediaNIFTY MetalNIFTY PharmaNIFTY Private BankNIFTY PSU BankNIFTY RealtyNIFTY Oil & GasNIFTY SME EmergeNIFTY CommoditiesNIFTY CPSENIFTY EnergyNIFTY India ConsumptionNIFTY InfraNIFTY MNCNIFTY PSENIFTY Serv SectorNIFTY100 Liquid 15NIFTY Midcap Liquid 15NIFTY Midcap 150 Quality 50NIFTY50 Equal WeightNIFTY100 Equal WeightNIFTY100 Low Volatility 30NIFTY100 Alpha 30NIFTY Alpha 50NIFTY Dividend Opportunities 50NIFTY High Beta 50NIFTY Low Volatility 50NIFTY200 Quality 30NIFTY 500 Value 50NIFTY 100 Quality 30SECTORSAgricultureAirlinesAluminiumAsset Management CompaniesAutomobilesAuto AncillariesBanks (Private)Banks (PSU)BankingCementChemicalsDefenceDiagnosticsDronesEngineeringElectric VehicleElectric Vehicle BatteryEnergy SourcesESGEthanolFertilizersFintechFMCGFoodGreen HydrogenHotelsInfrastructureInsuranceInvestment and FinanceInvITIT (Large)IT (Others)LogisticsMediaMetalMiningIndia's Big Tech StocksIndian PharmaMNC PharmaPSUPaintPaperPlasticPowerRating AgenciesReal EstateREITsRenewable EnergyRetailingSemiconductorShippingSteelSugarSupply ChainTelecomTextilesTravel Support Services

10 results 25 results 50 results 100 results All results

Indian Share Market Update: Top Gainers and Losers