Stock markets rebound on record GST collections, positive manufacturing data; SENSEX up 128 pts, NIFTY50 near 22,650

Stock markets rebounded on Thursday with benchmark SENSEX closing higher by 128 points as record GST collections in April, positive manufacturing data, and foreign fund inflows boosted investor sentiment.

The 30-share BSE Sensex climbed 128 points or 0.17% to settle at 74,611 in a restricted trade. During the day, the index rose by 329 points or 0.44% to a high of 74,812.

The NSE NIFTY rose by 43 points or 0.19% to 22,648 as 29 of its constituents advanced and 21 declined.

From the SENSEX basket, Power Grid, Asian Paints, Tata Motors, Tata Steel, NTPC, Sun Pharma, Mahindra & Mahindra, HDFC Bank, Tata Consultancy Services and JSW Steel were among the major gainers.

Kotak Mahindra Bank was the biggest loser, dropping 2.95% after the bank announced the exit of its joint managing director KVS Manian.

ICICI Bank dropped a little over 1%, India's second-largest private lender rejected a media report that suggested that its MD and CEO was willing to step down. Bharti Airtel, Axis Bank, Wipro and IndusInd Bank were among the laggards.

As per experts benchmark indices saw moderate gains, mirroring global trends after the US Fed decided to maintain its interest rate, as widely accepted. The US central bank hinted at potential rate cuts while remaining cautious about sustaining the high inflation trend.

Goods and Services Tax collections grew 12.4% to a record high of ₹2.10 lakh crore in April, aided by strong economic momentum and increased domestic transactions and imports, the Finance Ministry said on Wednesday.

In the broader market, the BSE Midcap gauge climbed 0.91% and Smallcap index advanced 0.29%.

Among the indices, utilities rallied by 1.49%, power by 1.47%, services by 1.24%, auto by 1.17%, metal by 1.03%, consumer discretionary by 0.82%, energy by 0.61% and healthcare by 0.31%.

India's manufacturing sector activity moderated in April but still recorded the second fastest improvement in operating conditions in three-and-a-half years supported by buoyant demand, a monthly survey said on Thursday.

The seasonally adjusted HSBC India Manufacturing Purchasing Managers' Index (PMI) fell from 59.1 in March to 58.8 in April, signalling the second-best improvement in the health of the sector for three-and-a-half years.

In Purchasing Managers' Index (PMI) parlance, a print above 50 means expansion while a score below 50 denotes contraction.

In Asian markets, Hong Kong settled with gains while Seoul, Tokyo and Shanghai ended lower. European markets were trading on a mixed note. Wall Street ended mixed on Wednesday.

Global oil benchmark Brent crude climbed 1.02% to $84.29 a barrel.

Foreign Institutional Investors (FIIs) bought equities worth ₹1,071.93 crore on Tuesday, according to exchange data. Domestic equity markets were closed on Wednesday on account of Maharashtra Day.

With Inputs from PTI