Mumbai | Benchmark equity indices Sensex and Nifty rallied in early trade on Friday, buoyed by GST rate cuts announcement and a positive trend in global markets.

The 30-share BSE Sensex climbed 318.55 points to 81,036.56 in early trade. The 50-share NSE Nifty rallied 98.05 points to 24,832.35.

From the Sensex firms, Mahindra & Mahindra, Trent, Tata Motors, Asian Paints, Power Grid, and Reliance Industries were among the gainers.

ITC, Hindustan Unilever, NTPC, and Sun Pharma were among the laggards.

Common use items from roti/paratha to hair oil, ice creams and TVs will cost less, while tax incidence on personal health and life insurance will be brought down to nil after the all-powerful GST Council on Wednesday approved a complete overhaul of the tangled Goods and Services Tax (GST) regime.

The GST Council approved limiting slabs to 5 per cent and 18 per cent, effective from September 22, the first day of Navaratri.

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

US markets ended higher on Thursday.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 106.34 crore on Thursday, while Domestic Institutional Investors (DII) bought stocks worth Rs 2,233.09 crore, according to exchange data.

Global oil benchmark Brent crude dipped 0.18 per cent to USD 66.87 a barrel.

On Thursday, the Sensex settled 150.30 points or 0.19 per cent higher at 80,718.01, and the Nifty ended marginally higher by 19.25 points or 0.08 per cent at 24,734.30.