Sensex reclaims 60K-mark on better GST mop-up, global cues

The benchmark Sensex shot by 831.53 points to cross 60,000 again and end at 60,138.46 and the NSE Nifty Index rose by 258 points to 17,929.65.

Domestic stock indices on Monday bounced back on a positive footing from the recent sell-off, due to strong momentum in global markets, favourable domestic economic data and good GST collection. The benchmark Sensex shot by 831.53 points to cross 60,000 again and end at 60,138.46 and the NSE Nifty Index rose by 258 points to 17,929.65.

Sensex had fallen 1,837 points largely due to foreign portfolio investors (FPI) selling in the last two trading sessions. Encouraging data also boosted the sentiment. While GST collection came closer to the record high, the IHS Markit India Manufacturing Purchasing Managers’ Index stood at 55.9 in October against 53.7 in September, rising for the fourth straight month. GST collections for October came in at Rs 1.30 lakh crore as compared with Rs 1.17 lakh crore in September, indicating strengthening economic recovery in the second half of the fiscal year 2021-22. It was the second highest monthly number since the introduction of GST.

Vinod Nair, head of research at Geojit Financial Services, said, “Indices bounced back on a positive footing from the recent sell-off, due to strong momentum in global markets, favourable domestic economic data and good Q2 results announcement..”

Markets witnessed a rebound and gained nearly one and a half per cent, taking a breather after the recent fall. Upbeat global cues triggered a firm start but profit taking at the higher levels capped the upside. However, the news of GST collection reaching closer to record high fuelled fresh momentum in the latter half, which further strengthened with recovery in select index majors.

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