Mumbai, July 3: After opening in the green on Monday, Indian benchmark indices extended their gains, on the back of the successful implementation of the Goods and Services Tax (GST). ITC shares also record record highs, further boosting the markets. The Bombay Stock Exchange’s (BSE) Sensitive Index (Sensex) was up 302.73 points at 31224.34, while Nifty of the National Stock Exchange (NSE) was up by 86.25 points and was trading at 9607.15 points during intra-day trade.
Stocks of ITC recorded a rise of 9.6 per cent, after taxation rates on cigarettes under the new GST regime reduced. The new tax rates are about 2 to 5 per cent lower than the earlier tax structure, due to subsuming of some indirect taxes. The lower taxation of cigarettes is aimed at tackling the problem of large-scale smuggling of the tobacco product. Till closing time on Friday, ITC’s stocks were trading up by a total of 33.9 per cent this year.
ITC stock has been driving the Nifty FMCG index by as much as 5.7 per cent, to new all-time high on Monday. Stocks of other cigarette manufacturing companies like VST Industries Ltd, Godfrey Phillips India and Kothari Products Ltd also rose, with these three stocks gaining 8.63 per cent, 5.51 per cent, and 3.2 per cent respectively. Shares of Hindustan Construction Company (HCC) also rose 4.7 per cent in the intraday trade on Monday.
A total of 1618 shares had advanced till noon, and 525 shares declined, while 112 shares remained unchanged. Besides ITC, among the top gainers on the indices were Maruti Suzuki, Tata Steel, M&M, Hindalco and Vedanta. Meanwhile, among the worst performing shares were NTPC, Wipro, Kotak Mahindra, Bajaj Auto, etc.