Prospects of GST's passage buoy markets; Sensex gains 151 points

Heightened chances of key economic legislations getting passed during the winter session buoyed the Indian equity markets during mid-afternoon trade on Thursday.

Initially, both the bellwether indices of the Indian equity markets opened on a weak footing but gained strength in line with their Asian and European peers.

Furthermore, hopes of a stimulus package in European Union and better-then-expected outcome of the derivatives expiry cheered investors.

The barometer 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE) gained 151 points or 0.59 percent.

The wider 50-scrip Nifty of the National Stock Exchange (NSE) made similar gains during the mid-afternoon session -- rising by 43 points or 0.54 percent to 7,874.20 points.

The S&P BSE Sensex, which opened at 25,769.81 points, was trading at 25,927.20 points (at 1.15 p.m.) -- 151.46 points or 0.59 percent up from the previous day's close at 25,775.74 points.

The Sensex so far has touched a high of 25,960.28 points and a low of 25,769.81 points during the intra-day trade.

Market observers said positive bias emanating from hopes of the Goods and Services Tax (GST) Bill securing passage during the winter session of parliament buoyed the equity markets.

"The positive bias that we are observing is due to the expectations that a breakthrough can be achieved on the GST bill and that it can get passed in this session," Anand James, co-head, technical research desk with Geojit BNP Paribas Financial Services, told IANS.

Besides GST, hopes of European Central Bank (ECB) announcing a stimulus package and rising European stocks gave a positive cue to Asian and Indian markets.

Even the better-than-expected rollover rate during the derivatives expiry despite the reduction in lot size in futures and options (F&O) segment by the Securities and Exchange Board of India (SEBI) has restored confidence of the investors.