Nifty hits 8650, Sensex up 200 pts; Dr Reddy's dives 10%

Moneycontrol Bureau10:00 am: The Sensex is up 207.88 points or 0.7 percent at 28184.40, and the Nifty up 70.25 points or 0.8 percent at 8660.90. About 1333 shares have advanced, 458 shares declined, and 77 shares are unchanged. 9:55 am FII view: Gautam Chhaochharia of UBS says goods & services tax (GST) is a key near-term driver for market sentiment but its impact on economy will likely be felt medium term.According to him first couple of years of GST implementation may be quite disruptive and impact uncertain. The wide range of revenue-neutral-rate by various expert committees/institutions indicates the complexity and unpredictability, he says.He feels if the rate is too high, it may lead to higher tax revenues but would hurt business, consumption and be inflationary.If too low, then it could cause fiscal stress, with its own adverse implications, Chhaochharia says, adding the consuming states are likely to benefit from GST but they won't share this with Centre.

9:45 Market check: The Sensex is up 178.50 points or 0.6 percent at 28155.02, and the Nifty is up 57.90 points or 0.7 percent at 8648.55 after briefly touching 8650. About 1269 shares have advanced, 435 shares declined, and 74 shares are unchanged.  Nikkei surged over 2 percent on hopes that PM Abe will announce 254 billion yen stimulus. A media report may have stoked speculation that the government was considering "helicopter-money light." Helicopter money is essentially printing money and distributing payouts, something that Japanese officials have denied they plan to do. 9:30 am Market climbs: The market has gradually picked up pace with the Nifty comfortable above the 8600. the 50-share index is up 47.35 points or 0.5 percent at 8638 and the Sensex is up 136.73 points or 0.5 percent at 28113.25. About 1176 shares have advanced, 366 shares declined, and 58 shares are unchanged.

BHEL, ICICI Bank, Maruti, Tata Motors and SBI are top gainers in the Sensex. Dr Reddy's dived 10 percent while Sun Pharma, Bajaj Auto and Lupin are other losers.Don't miss: Quick tips: How to trade 4 largecap stocks post Q1 results

The market has opened flat with companies, that have posted dismal Q1 earnings, dragging indices. The Sensex is up 28.89 points or 0.1 percent at 28005.41, and the Nifty is up 10.55 points or 0.1 percent at 8601.20. About 291 shares have advanced, 117 shares declined, and 24 shares are unchanged.