Equity indices scale new highs, Tata Group stocks decline

Equity benchmark indices continued their record-setting rally on Wednesday ahead of the crucial Goods and Services Tax (GST) Council meeting amid positive global cues.

The investor risk appetite also appeared to be gradually improving on an expectation of further steps in the upcoming Budget to revive consumption and attract investments.

Investors awaited the outcome of the GST council meet but held the view that a rate hike is unlikely due to a surge in inflation while the focus will be more on revenue realisation.

However, shares of Tata Group companies came under pressure after the National Company Law Appellate Tribunal (NCLAT) restored Cyrus Mistry as its Executive Chairman and ruled that the appointment of N Chandrasekaran was illegal.

Tata Global Beverages fell by 4.1 per cent, Tata Motors by 2.8 per cent, Tata Chemicals and Tata Teleservices by 1.6 per cent each, and Tata Power by 0.98 per cent.

The BSE S & P Sensex closed 206 points or 0.5 per cent higher at 41,559 while the Nifty 50 gained by 60 points at 12,225. At the National Stock Exchange, Nifty pharma was up by 1.2 per cent, metal by 0.75 per cent and IT by 0.45 per cent. Nifty PSU bank and media were in the red.

Among stocks, IT major Wipro and Tech Mahindra gained by 1.5 per cent each while HCL Technologies was up by 1.3 per cent. Sun Pharma ticked up by 2.5 per cent and Dr Reddy's rose by 1.6 per cent.

The other prominent winners were Mahindra and Mahindra, JSW Steel, Asian Paints, HDFC Bank and FMCG major ITC. But GAIL, Grasim, Yes Bank and State Bank of India closed in the red with losses ranging between 1.7 and 2 per cent.

Meanwhile, Asian stocks were mixed after climbing for five straight sessions. Japan's Nikkei dipped by 0.55 per cent and South Korea's Kospi slipped by 0.04 per cent.

Hong Kong's Hang Seng gained marginally by 0.15 per cent while Shanghai Composite dipped by 0.18 per cent even as Beijing trimmed another short-term interest rate.