Capital market stocks jump up to 8 per cent on Tuesday
The Nifty Capital Markets index reached a seven-week high amid hopes for tax relief and foreign investor buying.
Capital market stocks rose by as much as 8 per cent on Tuesday, according to The Economic Times. The surge saw the Nifty Capital Markets index climb more than 3 per cent to reach a seven-week high of 5,380.
Angel One was the top performer with shares rising nearly 8 per cent. Other notable gainers included Motilal Oswal Financial Services at nearly 6 per cent, while CDSL, CAMS, and 360 One WAM each rose around 5 per cent.
The rally coincided with a broader market increase where the Sensex rose nearly 730 points to cross 76,420 and the Nifty 50 climbed over 190 points to pass 23,630. This movement increased the total market capitalisation of all companies listed on the BSE by approximately Rs 4 lakh crore to Rs 486 lakh crore.
Finance Minister Nirmala Sitharaman said on Monday that the central government would consider requests from foreign investors to review the tax structure on equity capital gains. She noted that the administration has received suggestions regarding long-term capital gains (LTCG) tax and stated she would consider the feedback.
Investor sentiment was also supported by foreign institutional investors (FIIs) who were net buyers of Indian equities on Monday. Provisional data from the NSE showed FIIs purchased shares worth nearly Rs 3,115 crore.