Sensex ends 183 points higher on GST reform hopes, Dr Reddy's shares crack 8%

Snapping a two-session losing streak, the domestic markets ended higher in trade on Thursday, riding on hopes that parliament would clear goods and services tax (GST) Bill in the ongoing Winter Session.

The S&P BSE Sensex ended 182.89 points up at 25,958.63, while broader CNX Nifty settled the day above its key 7,850-mark, up 52.20 points at 7,883.80.

Market breadth remained positive with 22 of the 30 Sensex components ending the day in green.

Stock of Dr Reddy's was the top Sensex loser and shed 8 per cent after the US Food and Drug Administration (US FDA), which had issued a warning letter to drug major over quality issues, said it might withhold approval of the company's fresh drugs and stop import if no corrective action is taken.

The idea of setting a relatively low rate for a new sales tax seemed to be gaining traction on first day of winter session of Parliament, as politicians of all stripes met to debate what would be the country's biggest tax reform since independence.

The bill has passed the lower house of parliament, but has been blocked in the upper house.

Winter session will continue until December 23.

"GST, that's the key reason why the market is holding on and some amount of short covering on the last day of expiry," said Alex Mathews head of research at Geojit BNP Paribas.

Among Asian markets, China's Shanghai Composite ended with a downtick of 0.34 per cent, while Hong Kong's Hang Seng settled on a flat note. Japan's Nikkei ruled higher by 0.49 per cent at close.

Overnight, US stocks ended mixed in a quiet trading session with gains in health care and consumer stocks. Market trading volumes were low as many market participants were away in the last session of the week as the markets are shut for Thursday and most of the Firday afternoon.

Lowdown on markets today

1:20 pm

Sensex at 25920.71, up 144 points

Nifty at 7870.95, up 40 points

11:08 am

Sensex at 25,932.15, up 156.41 points

Nifty at 7,875.80, up 44.20 points

10:10 am

Sensex at 25932.89, up 157 points

Nifty at 7874.40, up 42 points

9:20 am

Sensex at 25,840.33, up 64.59 points

Nifty at 7,847.95, up 16.35 points