Early GST euphoria gives way to mkt fatigue

Sensex and Nifty erase most of day's gains amid tariff worries and weak earnings outlook

- SUNDAR SETHURAMAN

Indian equity benchmarks gave up early gains and ended flat on Thursday, as a higher goods and services tax (GST) on oil exploration services dragged down index heavyweight Reliance Industries (RIL), offsetting advances in automotive and banking majors.

The BSE Sensex, after rising as much as 889 points (1.1 per cent) during the day, closed at 80,718—up 150 points, or 0.2 per cent. The National Stock Exchange Nifty ended at 24,734, a gain of 19 points, or 0.08 per cent. Market capitalisation, however, declined by ₹1.5 trillion to ₹451 trillion.

On Wednesday (September 3), Finance Minister Nirmala Sitharaman announced GST rate cuts on two-wheelers, consumer staples, air conditioners, cancer drugs, and other items. The GST Council approved a simplified two-rate structure of 5 per cent and 18 per cent for most goods, replacing the current four-rate system.