India's NSE index bounced back to post its biggest single-day percentage gain in a month on local media reports that the government would discuss a roadmap to roll out the proposed goods and services tax (GST) next month. The government plans to implement GST, India's most ambitious tax reform in decades, from April 1 next year. The broader NSE index gained 0.57 percent, marking its biggest single-day percentage gain since October 16.
The benchmark BSE index ended 0.58 percent higher, recording its biggest percentage gain in a day since October 23. The attacks in Paris come as Indian shares have fallen for three consecutive weeks on the back of disappointing earnings results and heavy foreign selling. Foreign investors have sold about $380 million in November according to regulatory data.
"There is no positive macro-economic data and global cues are negative. What we are seeing today is a dead-cat bounce, it doesn't mean the market is very positive," Alex Mathews, head of research at Geojit BNP Paribas said. All sectors were trading in the green with the exception of resources and IT stocks. Blue-chips stocks that were heavily oversold last week, led gains with ITC rising 2.23 percent and Larsen & Toubro up 1.41 percent. ITC lost 2.34 percent while L&T shed about 3.34 percent last week. SH Kelkar, which marked its market debut on Monday, was trading 14 percent higher from its IPO price of 180 rupees. The stock gained as much as 25 percent to 225.05 rupees earlier in the day.
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