Analysts say that the Street would be looking at GST implementation over the next few months and the impact to particular sectors. "We expect markets to remain volatile and track the management commentary on how they are adjusting to the issues arisen due to the GST," domestic brokerage Angel Broking said in a note.
Meanwhile, implementation of GST will be positive for India's credit rating as it will lead to higher GDP growth and increased tax revenues, Moody's Investors Service has said.
"Over the medium term, we expect that the GST will contribute to productivity gains and higher GDP growth by improving the ease of doing business, unifying the national market and enhancing India's attractiveness as a foreign investment destination," Moody's VP (sovereign risk group) William Foster said.
Elsewhere, Ashok Leyland's shares surged nearly 5 per cent after the commercial vehicle maker recorded a 11 per cent sales growth in June.
At 9:45 am, the Sensex was up 122 points at 31,043, off its early high of 31,258. The Nifty hovered around 9,550, up around 30 points.