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Sensex reclaims 40k on tax rejig buzz, global cues; Nifty ends at 11,844

Experts said the reduction in corporation tax has helped revival of corporate earnings.

Sundar Sethurman & Bloomberg  |  Mumbai 

BSE, sensex
The Bombay Stock Exchange | Photo: ANI

The benchmark on Wednesday closed above the 40,000-mark as hopes of favourable reform measures by the government kept the mood buoyant.

Steady global indices, ahead of the US Fed’s monetary policy decision — where the central bank was widely expected to cut rates — also helped sentiment.

Advancing for the fourth straight session, the closed at 40,052, up 220 points, or 0.6 per cent.

The blue-chip company index took 98 sessions to reclaim the 40,000-mark, which it had first reached in early June.

The Nifty gained 57 points, or 0.5 per cent, to close at 11,844. It is 2 per cent away from its previous all-time closing high of 12,089, reached on June 3.

are buoyant on hopes of fresh reforms from the government and change in the long-term capital gains tax structure,” said Vinod Nair, head (research), Geojit Financial Services.

Overseas investors were strong buyers on Wednesday, pumping in nearly Rs 7,200 crore, provisional data showed. This was the biggest single-day purchase by foreign portfolio investors (FPIs) since February 2017.

However, market players said bulk of the inflows were on account of a share sale in HDFC Life Insurance by co-promoter Standard Life.

Experts said the reduction in corporation tax has helped revival of corporate earnings.

“Better-than-expected results are providing fuel to the The cut in taxes has aided the September quarter earnings. There is hope that earnings growth will pick up even more in the second half of the financial year,” said Nair.

The market breadth was mixed on Wednesday, with 1,380 stocks advancing and 1,132 declining. Fourteen of 19 sectoral indices compiled by the BSE gained, led by a gauge of IT companies.

TCS contributed the most to the advance, rising 2.6 per cent, while SBI was the top performer, climbing 3.4 per cent.

Sectorally, the BSE IT, teck, oil and gas, FMCG, capital goods, utilities, telecom, and energy indices gained up to 1.47 per cent.

On the other hand, the consumer durables, realty, metal, and auto indices fell up to 0.98 per cent.

First Published: Thu, October 31 2019. 00:26 IST