GST Bonanza fuels stock markets rally; Sensex jumps nearly 900 points

New Delhi: Benchmark equity indices Sensex and Nifty surged in early trade on Thursday as investors became cheerful after the GST Council approved a complete overhaul of the tangled Goods and Services Tax regime.

The 30-share BSE Sensex jumped 888.96 points to 81,456.67 in opening trade. The 50-share NSE Nifty surged 265.7 points to 24,980.75.

Common use items from roti/paratha to hair oil, ice creams and TVs will cost less, while tax incidence on personal health and life insurance will be brought down to nil after the all-powerful GST Council on Wednesday approved a complete overhaul of the tangled Goods and Services Tax (GST) regime.

The GST Council approved limiting slabs to 5 percent and 18 percent, effective from September 22, the first day of Navaratri.

However, Eternal, Tata Steel, NTPC and HCL Tech were among the laggards.

He further added that after the initial enthusiasm, tariff issues will continue to haunt the market.

US markets ended mostly higher on Wednesday.

Global oil benchmark Brent crude dipped 0.56 percent to USD 67.22 a barrel.

(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)