Sensex Rises Over 200 Points As Banking Shares Extend Gain, Nifty Above 10,000
Indian benchmark indices extended gains in the post noon trade, as banking shares led by IndusInd Bank witnessed buying. Shares of IndusInd Bank, which today said that it has entered into an exclusive agreement with microlender Bharat Financial Inclusion to explore merger opportunities, surged as much as 6 per cent to a 52-week high of Rs. 1,799.10. It was also the top gainer among the 51 shares in Nifty. Shares of Bharat Financial Inclusion also jumped over 4 per cent to an 52-week high of Rs. 979.
As of 1.50 pm, Sensex was up 218 points or 0.68 per cent at 31,905.66 and the Nifty50 index traded 0.82 per cent higher at 10,016.95. Other than banking, auto shares also witnessed buying today as the increase in goods and services tax (GST) was less wide-ranging than expected. Tata Motors, Maruti Suzuki rose over 2 per cent each.
The government said on Saturday it would increase taxes for mid-sized, large, and sports utility vehicles under the newly lunched indirect tax – GST.
The quantum of the increase was less than expected and tax rates for smaller cars and hybrid vehicles were not raised, comforting investors.
Meanwhile, positive Asian shares also boosted sentiments. Investors in Asia reacted with relief after North Korea did not conduct another missile test this weekend, when it celebrated its founding anniversary. (With agency inputs)