Mumbai, Sep 3 (PTI) Benchmark equity indices Sensex and Nifty closed higher in a volatile session on Wednesday, driven by a rally in metal stocks and optimism related to the GST Council meeting.

After oscillating between highs and lows, the 30-share BSE Sensex jumped 409.83 points or 0.51 per cent to settle at 80,567.71. During the day, the benchmark hit a high of 80,671.28 and a low of 80,004.60, gyrating 666.68 points.

The 50-share NSE Nifty climbed 135.45 points or 0.55 per cent to 24,715.05.

The GST Council is meeting in New Delhi for two days to discuss the proposed pruning of tax rates to 5 per cent and 18 per cent.

Among Sensex firms, Tata Steel jumped the most by 5.90 per cent. Titan, Mahindra & Mahindra, ITC, Eternal, State Bank of India, and Trent were among the other gainers.

However, Infosys, NTPC, Hindustan Unilever, TCS, Adani Ports and Bharti Airtel were among the laggards.

Indian equities closed higher after a mixed start to the session, buoyed by expectations of a consumption-led stimulus from the potential GST slab rationalisation.

"In the near term, market sentiment hinges on the outcome of the GST Council meeting with traction on consumption-oriented stocks and sectors," Vinod Nair, Head of Research, Geojit Investments Limited, said.

In Asian markets, South Korea's Kospi settled in positive territory while Japan's Nikkei 225 index, Shanghai's SSE Composite index and Hong Kong's Hang Seng ended lower.

Equity markets in Europe were trading higher.

US markets ended lower on Tuesday.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,159.48 crore on Tuesday, according to exchange data.

Global oil benchmark Brent crude dropped 1.52 per cent to USD 68.09 a barrel.

On Tuesday, the Sensex declined 206.61 points or 0.26 per cent to settle at 80,157.88. The Nifty dipped 45.45 points or 0.18 per cent to 24,579.60. PTI SUM SUM MR

GST slab rationalisation drives market sentiment as equities respond to potential tax rate pruning and consumption stimulus. Equity indices rose amid volatility primarily on optimism that the two day GST Council meeting proposing pruning of tax rates to 5 per cent and 18 per cent could deliver a consumption led stimulus; this regulatory prospect drove gains in metal and consumption oriented stocks while FII selling and movements in global oil and regional markets also influenced intraday trading.