Indian shares rose nearly 1 percent on Monday, 3rd July 2017, heading for a third straight session of gains as consumer goods makers such as ITC Ltd surged on hopes the newly implemented goods and services tax (GST) would reduce retail prices and boost sales.
The unveiling of GST led some of India’s biggest automakers and retailers to announce price cuts, although many companies shied away from doing so due to the complexity of the new system. “FMCG companies like ITC are going to benefit in the long run from the GST rollout,” said Anupam Singhi, chief operating officer at independent research firm William O’Neil India.
Shares of fertiliser makers surged after GST rate for fertilisers was slashed to 5 percent on Friday.
The broader NSE index was up 0.88 percent at 9,604.65 as of 0602 GMT, while the benchmark BSE index was 0.90 percent higher at 31,201.15. NSE’s Nifty FMCG index climbed as much as 5.6 percent to an all-time high with Hindustan UnileverLtd gaining above 1 percent.
Carmaker Maruti Suzuki India gained as much as 1.8 percent after posting a 7.6 percent jump in June vehicle sales on Saturday, while commercial vehicles maker Ashok Leyland climbed to its highest in a year after reporting an 11 percent rise in June total sales.