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Indian stock markets on Thursday rose over 1% after the government said that goods and services tax (GST) collections hit a record high in March. The Sensex closed at 50,029.83, up 1.05%, while the Nifty closed at 14,867.35 or 1.2% higher.

Investors also cheered the progress of vaccination in India, with the government allowing shots to be administered to all those above 45 years from Thursday.

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GST collections by both the central and state governments touched an all-time high of 1.24 trillion in March.Analysts said this was a clear indicators of rapid post-pandemic economic recovery. For the fourth consecutive month GST collections breached the 1 trillion mark, on the back of improved compliance and recovery in economic activities.

The government also said that it has transferred an additional 45,000 crore to states as part of the tax devolution for FY21. “The healthy GST collections in the month of March 2021, along with the additional devolution of 45,000 crore to the state governments for the just-concluded fiscal, confirm our view that the tax revenues in FY21 have exceeded the RE (revised estimates). As a result, we continue to expect the government of India’s fiscal deficit to undershoot the FY21 RE of 18.5 trillion suggesting ample cash balances at the start of FY22," Icra said in a report.

However, a section of analysts is still wary of the surge in covid-19 cases and advised to stay away from markets.

Asian equities, too, rose this morning as investors assessed US President Joe Biden’s infrastructure stimulus plans.

Meanwhile, India saw the biggest daily surge in covid cases since early October with 72,330 new infections in the last 24 hours.

“Going ahead, Indian markets are likely to track global cues after the recent announcement of infra investment plan by US president. Investors would now focus on upcoming quarterly results which would kick-start from mid-April" Motilal Oswal said in a note to investors.

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