Nifty ends above 8,400 on govt nod for changes in GST bill

Defensive shares were the top gainers along with select financials amid expiry of July deriviative contracts

Benchmark share indices ended higher, amid expiry of July derivative contracts, after the government today cleared important changes to the government's constitutional amendment Bill on the proposed national goods and services tax (GST).

The 30-share Sensex ended up 142 points at 27,705 and the 50-share Nifty ended up 47 points at 8,422.

"The US Fed has kept the interest rates unchanged in this policy meet. On the one hand, it expressed confidence in continued drop in the unemployment rate, which could be nearing the full employment zone. However, US Fed wants to see more evidence of improvement in the labour market. However, the markets have almost priced in a rate hike expected in the September meeting as the next couple of months’ employment data is expected to be good," Kamlesh Rao, CEO, Kotak Securities.

In the broader market, the BSE Mid-cap index ended up 0.8% and the Small-cap index gained 0.9%. Market breadth ended strong with 1,747 gainers and 1,147 losers on the BSE.

The Indian rupee was trading lower against the US dollar at 64.01 compared to the previous close of 63.91 after the dollar gained against major currencies.

Meanwhile, the Union Cabinet today cleared important changes to the government's constitutional amendment Bill on the proposed national goods and services tax (GST).

The government also proposed setting up of the National Investment & Infrastructure Fund worth Rs 20,000 crore.

Further, the US Fed at its two-day meeting which ended on Wednesday signalled that it may raise interest rates in September on the back of improvement in the labour market.

SECTORS & STOCKS

BSE FMCG and Realty indices were the top gainers up over 2.7% each followed by Power, Auto and Healthcare indices. IT index was the top loser.

ITC ended up 3.9%. For April-June 2015 the company reported a net profit of Rs 2,265.44 crore – an increase of 3.6% over Rs 2,186.39 crore over corresponding period in last fiscal. HUL was also up 2.7%.

Dr Reddy's Labs gained 5.2% after the pharma major reported a 13.8% year-on-year (YoY) growth in consolidated net profit at Rs 626 crore for the quarter ended June 30, 2015 (Q1) against an average analyst estimate of Rs 569 crore.

Cipla gained 4.8% after its partner Sandoz received a USFDA nod to launch a generic version of Pulmicort respules (budesonide).

HDFC was up over 2% after the company's board approved raising upto Rs 5,000 crore through issue of secured redeemable non-convertible debentures and warrants to qualified institutional buyers.

Meanwhile, IT shares witnessed profit taking after gains in the previous sessions. Infosys, TCS and Wipro were down 0.6-1.5% each.

Among other shares, logistics companies have surged on the bourses after the Union Cabinet cleared important changes to the government's constitutional amendment Bill on the proposed national goods and services tax (GST). Gati surged 8%, while Patel Integrated Logistics gained 8%, Blue Dart Express rose 7%, Snowman Logistics was up 4%  and Transport Corporation of India was up 3%, Container Corporation of India gained 3%.

Navin Fluorine International jumped nearly 8% after the company's net profit more than doubled at Rs 18.15 crore for the quarter ended June 30, 2015 (Q1). The commodity chemicals maker had reported a profit of Rs 8.50 crore in the year-ago quarter.

Hikal dipped 8% in an otherwise firm market after reporting a sharp 68% year-on-year (YoY) decline in net profit at Rs 1.83 crore for the quarter ended June 30, 2015 (Q1), on account of flat revenue and exchange loss.

Bank of Baroda jumped 10% after the state-owned bank reported a better-than-expected standalone net profit at Rs 1,052 crore for the quarter ended June 30, 2015 (Q1). The bank had profit of Rs 1,362 crore in the year ago quarter.