Dalal Street Bounces Back: Sensex Gains 1,109 Points, Nifty Crosses 22,700 After FM Remarks on Capital Gains Tax
Summarized by AI; it may make mistakes. Check important info
Summarized by AI; it may make mistakes. Check important info
Dalal Street snapped its recent losing streak on Tuesday as benchmark indices staged a fierce rally, driven by heavy buying in IT heavyweights and encouraging comments from Union Finance Minister Nirmala Sitharaman regarding capital gains tax structures.
The 30-share BSE Sensex surged 1,109.10 points, or 1.54 per cent, to settle at 73,033.78. Similarly, the broader NSE Nifty 50 jumped 338.70 points, or 1.51 per cent, crossing the psychological barrier to close at 22,702. The sharp upturn added over ₹3.89 lakh crore to total investor wealth in a single trading session.
Tech Giants Drive Broad-Based Buying
Technology stocks led the market charge following robust quarterly earnings performance. HCL Technologies emerged as the top gainer on the index, surging nearly 6 per cent following impressive profit margins. Sectoral peers Tata Consultancy Services, Tech Mahindra, and Infosys logged significant gains, lifting the Nifty IT index by almost 5 per cent.
Automobile and FMCG majors also witnessed strong buying interest, with Hindustan Unilever and Bajaj Auto climbing over 3 per cent each.
FM Sitharaman's Remarks Fuel Sentiment
Market sentiment received a major boost during afternoon trade after Finance Minister Nirmala Sitharaman noted that discussions regarding long-term capital gains tax (LTCG) and securities transaction tax (STT) remain ongoing. The statement provided much-needed relief to market participants seeking policy clarity following weeks of persistent selling pressure.
Additionally, the Indian rupee strengthened to 95.28 against the US dollar, registering its second consecutive day of recovery after recent regulatory measures by the Reserve Bank of India to curb foreign exchange volatility.
Macro Factors in Focus
Despite the sharp recovery, analysts advise investors to remain watchful as global risk factors persist. Crude oil prices held above $105 per barrel for Brent crude amidst Middle East developments, keeping inflationary concerns alive. Market participants now shift focus to upcoming quarterly earnings releases and crucial US inflation data scheduled for later this week.
