Nifty hits more than 15-month high on GST hopes

(Reuters) - India's broader NSE index hit a more than 15-month high on Monday on hopes the country's upper house of parliament could pass the long-awaited Goods and Services Tax (GST) Bill as early as this week.

The proposed tax reform, the biggest since India's independence from Britain in 1947, seeks to replace a slew of federal taxes and levies in 29 states, transforming the nation of near 1.3 billion people into a customs union.

Shares also tracked a rally in global markets as Asian stocks hit a one-year peak after disappointing U.S. economic growth data reduced expectations that the U.S. Federal Reserve will raise interest rates in the next few months.

"We can expect the momentum (in shares) to continue with progress of the GST Bill," said Gaurang Shah, vice president, Geojit BNP Paribas Financial Services.

"Earnings unfolding will also be a key trigger for markets. With the positive impact of the monsoon and GST's progress, we are in for stable growth going forward."

The broader NSE Nifty rose as much as 0.84 percent to its highest since April 16, 2015.

The benchmark BSE Sensex rose as much as 0.83 percent to its highest since Aug. 10.

Automakers were among the gainers as expectations rose they could benefit from a more unified tax system.

Maruti Suzuki India was up 2.2 percent and Tata Motors rose 1.1 percent.

Logistics firms also gained, with Shipping Corp of India up 1.5 percent and Transport Corp of India rising 1 percent.

Advanced Enzyme Technologies Ltd surged as much as 38.8 percent on market debut, with analysts saying the enzyme producer had significant growth potential, supported by strong entry barriers and strong margins.

ICICI Bank fell as much as 2.87 percent after India's top private sector lender by assets reported late on Friday that first-quarter net profit fell about 25 percent as provisions for bad loans more than doubled.

Larsen & Toubro lost as much as 3.19 percent on lower-than-expected quarterly results.

(Reporting by Samantha Kareen Nair in Bengaluru; Editing by Biju Dwarakanath)