This Article is From Oct 18, 2016

Sensex Extends Gains, Surges 400 Points Led By Gains In Banking, IT Stocks

Sensex Extends Gains, Surges 400 Points Led By Gains In Banking, IT Stocks

Sensex and Nifty bounced back from the previous session's multi-month lows to trade over 1 percent higher on Tuesday, helped by short-covering in stocks such as Zee Entertainment Enterprises Ltd and Tata Steel Ltd. 

Asian stocks extended gains, with MSCI's broadest index of Asia-Pacific shares outside Japan up 1.2 percent, pulled higher by financials and a rebound in oil prices. 

Back home, investors now await a government meeting on the goods and services tax (GST) for clarity on rates. The three-day meeting of the GST Council, comprising federal and state finance ministers, will decide the main tax rate and those for different sectors. 

"I think markets today are drawing comfort from global markets, which are positive. The GST outcome is not expected before today evening or tomorrow, so it's the global cues that are supporting for now," said Neeraj Dewan, director at Quantum Securities. 

As of 1:45 p.m., the Sensex traded 389 points or 1.32 percent higher at 27,873 and Nifty was at 8,633, up 1.32 percent or 112 points.

Among the gainers, Tata Steel rose as much as 3.17 percent after falling nearly 2 percent in the last three sessions, while Zee Entertainment gained 3.4 percent after shedding 12 percent in the previous four sessions. 

Housing Development Finance Corp was up 3.28 percent after declining about 9 percent in the last seven sessions. 

Logistics companies such as Gati Ltd and Allcargo Logistics Ltd rose 3.4 percent and 2.1 percent respectively, as the GST Council's three-day meeting to decide on tax rate began today. 

Shriram EPC jumped 12.2 percent after the engineering services company said it got an order worth over Rs 61 crore from the Karnataka Water Authority. 

But, Zensar Technologies dropped 2.2 percent after its September-quarter profit slumped nearly 41 percent.