Sensex rises over 1,000 points as Nifty50 crosses 23,700 mark
The market rally added nearly Rs 4 lakh crore to the total market capitalisation of companies on the BSE on Tuesday.
The BSE Sensex and Nifty50 continued their upward trend on Tuesday, following a seven-week closing high in the previous session, according to the Times of India. By 1:30 PM, the Nifty50 was trading at 23,724.00, an increase of 283 points or 1.21 per cent, while the BSE Sensex reached 76,722.16, up 1,029 points or 1.36 per cent.
The surge increased the combined market capitalisation of companies on the BSE by almost Rs 4 lakh crore, bringing the total to Rs 486 lakh crore. IndiGo and HDFC Bank led the Sensex gains with approximately 3 per cent increases. Other gainers included UltraTech Cement, Hindustan Unilever, Asian Paints, Bajaj Finance, Bajaj Finserv, and Infosys, which all rose by about 2 per cent.
Reliance Industries was a notable laggard, falling slightly more than 1 per cent after a 12 per cent jump in the previous session. V K Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said circumstances are ideal for the market rally to continue, noting that Brent crude's decline to $104 and foreign institutional investor (FII) buying could accelerate the trend.
The rally was supported by expectations of a review of the long-term capital gains (LTCG) tax structure. Finance Minister Nirmala Sitharaman said on Monday that the government would consider a request from foreign investors to review the tax structure. She noted that the government would consider suggestions regarding levies on LTCG for overseas investors.
Other contributing factors included softer oil prices, with Brent crude futures staying below $105 per barrel, and a shift in FII activity. Provisional NSE data showed FIIs recorded net buying of nearly Rs 3,115 crore on Monday. Additionally, the rupee opened 0.26 per cent higher at 94.6550 against the US dollar.