MUMBAI, Dec 18 (Reuters): The BSE Sensex and Nifty rose 1.6 per cent on Thursday to snap a five-session losing streak as blue-chips including ICICI Bank surged as a rally in global markets and the cabinet's nod to a nationwide sales tax bill led to unwinding of short positions.
Asian share markets rose on Thursday after the US Federal Reserve indicated it would wait until at least two meetings before raising rates.
Investors were also encouraged after the Indian cabinet approved a constitutional amendment bill on Wednesday to rationalise state and central indirect taxes into a harmonised goods and services tax (GST).
The developments sparked a recovery in domestic shares that had been hit by concerns about financial contagion from the Russian currency's drop to record lows.
"Progress on GST is positive and recent correction is a good opportunity for investors to increase their India allocations," said G. Chokkalingam, founder of Equinomics, a research and fund advisory firm.
The Nifty rose 1.61 per cent to 8,159.30, while the Sensex ended up 1.56 per cent at 27,126.57, both marking their biggest daily gains since October 31.
Gains were spread across-the board with all BSE sector indexes ending positive. The BSE Consumer Durables index gained the most, ending 5.3 per cent higher, followed by the BSE Power index which rose 3.3 per cent.
Blue-chips led the gainers. ICICI Bank rose 4 per cent, while Larsen & Toubro ended up 2.6 per cent.
Infosys rose 1.4 per cent and HDFC Bank gained 1.3 per cent.
Shares of logistics companies rose on hopes of lower taxes and fast movement of goods after the cabinet cleared the nationwide goods and services tax bill.
Sensex rises more than 400 points
FE Team | Published: December 19, 2014 00:00:00 | Updated: November 30, 2026 06:01:00
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