The first trading day — July 3 — after the Goods and Services Tax (GST) came into effect (from July 1) saw investors cheering the implementation of the indirect tax regime. ITC was the top gainer, rising as high as 9.2 percent intraday to Rs 353 before closing at Rs 342, a net gain of 5.70 percent.
The BSE Sensex ended 300 points, or 0.97 percent higher, at 31,221 while the NSE Nifty closed at 9,615, up 0.99 percent, led by ITC, Hindalco and Eicher Motors.
"Market welcomed the new tax regime, shrugging off the initial hiccups of investors during the last couple of weeks where market witnessed consolidation. Spending is likely to increase due to the impact of lower tax and increased sales volume will continue to benefit the earnings potential in the future," Vinod Nair, Head of Research, Geojit Financial Services, said in a note.
Among sectoral indices, the NSE FMCG and Auto outperformed the Nifty, ending 3.84 percent and 1.33 percent, respectively.
On the BSE, Hindustan Unilever closed 1.29 percent higher at Rs 1,095 while Chambal Fertilizers and Chemicals ended 2.81 percent to end at Rs 120.75 on rate cut for fertilizers.
CDSL, which listed at a significant premium last Friday to its issue price of Rs 149, closed 1 percent higher at Rs 264 on the NSE.
On the BSE, Yes Bank was the top gainer among bank stocks while State Bank of India and ICICI Bank ended almost flat at Rs 274.70 and 290, respectively. ICICI Prudential Life Insurance closed at Rs 472 on the BSE.
Stocks that hit new 52-week highs during the day included ITC, Ashok Leyland, VST Industries, Aditya Birla Nuva, Tata Steel and Colgate-Palmolive.
Infosys ended 1.68 percent higher at Rs 951.40, Wipro closed flat at Rs 259 and TCS gained 0.38 percent to end at Rs 2,373.40 on the BSE.
