Sensex jumps over 1,400 points, hotel stocks gain after GST rationalisation

Last Updated: Mon, Sep 23, 2019 13:46 hrs
Sensex (ANI photo)

Mumbai (Maharashtra: The rally on D-Street continued on Monday afternoon with heavy buying by foreign institutional investors (FIIs) and domestic traders after the government on Friday announced a rejig of corporate tax cuts to shore up investments and growth.

Equity indices also gained due to rationalisation of Goods and Services Tax for certain sectors. At 12:45 am, the BSE S&P Sensex was up by 1,404 points or 3.7 per cent at 39,417 while the Nifty 50 was 410 points higher at 11,684.

At the National Stock Exchange, all sectoral indices except for IT and pharma were in the positive territory with Nifty FMCG gaining by 5.8 per cent, private bank by 5.6 per cent, financial service by 5.4 per cent and auto by 3.2 per cent.

Hotel stocks were up after the cut in corporate taxes and rationalisation of Goods and Services Tax (GST) rates. Lemon Tree Hotels gained by 13.7 per cent, Indian Hotels by 8.6 per cent, ITC by 8.3 per cent, Hotel Leelaventure by 5.9 per cent and Chalet Hotels by 2.9 per cent.

Among others, the prominent winner was Indian engineering multinational Larsen & Toubro which edged higher by 9.3 per cent. Bajaj Finserv, Bajaj Finance, IndusInd Bank and Asian Paints gained by over 8 per cent while Adani Ports, Bharat Petroleum Corporation and ICICI Bank were up by more than 7 per cent each.

However, IT scrips lost with Infosys down by 4.2 per cent, Tata Consultancy Services by 3.2 per cent, Wipro by 3 per cent and Tech Mahindra by 1.9 per cent each.