NSE's Nifty50 index hits record high ahead of crucial GST Council meeting

Financials and materials stocks gained ahead of the 43rd GST Council meet to be chaired Finance Minister Nirmala Sitharaman later in the day

India's blue-chip Nifty 50 index hit a record high on Friday, as financials and materials stocks gained ahead of a key indirect tax related meeting by the country's finance minister later in the day.

The NSE Nifty 50 index was up 0.65% at 15,437.05 by 0347 GMT, while the benchmark S&P BSE Sensex was 0.53% higher at 51,383.43. Both the indexes have gained around 2% for the week.

Finance Minister Nirmala Sitharaman will chair the GST Council meeting in the capital, where it is likely to discuss a reduction in the tax rate on Covid medicines and ways to make up for a revenue shortfall in various states, media report https://www.livemint.com/news/india/finance-minister-nirmala-sitharaman-to-chair-43rd-gst-council-meeting-today-agendas-and-expectations-11622168609441.htmls said.

ICICI Bank Ltd and HDFC Bank Ltd were among the top boosts to the Nifty 50, gaining 0.8% and 0.6%, respectively. ICICI has risen for the last five sessions out of eight.

Nifty component Mahindra & Mahindra is set to report results later in the day.

Investor sentiment has also improved in the recent days due to a steady decline in daily COVID-19 cases in India. Earlier this week, the country reported its lowest daily rise of cases in more than a month.

In the broader Asian market, equities were on course for a seventh day of gains as investors bet the United States will lead the world out of the COVID-19 pandemic, with the focus turning to a multi-trillion dollar spending boost by the Biden administration.