Mumbai — Indian stock markets rallied sharply Tuesday, with the Sensex gaining more than 1,100 points as investor sentiment improved following Finance Minister Nirmala Sitharaman’s comments on potential discussions surrounding capital gains and securities transaction taxes.
The benchmark Sensex surged 1,109.10 points, or 1.54%, to close at 73,033.78, recovering from losses in the previous trading session. The Nifty 50 advanced 358.60 points, or 1.6%, to finish at 22,721.95.
The rally followed Sitharaman’s remarks expressing willingness to hear market participants’ views on long-term capital gains (LTCG) tax and securities transaction tax (STT).
The finance minister described discussions on these taxes as healthy, raising investor hopes that the government could consider changes to policies affecting equity market transactions.
Technology stocks led the gains, with HCL Technologies and Tata Consultancy Services among the top performers on the Nifty. Shriram Finance also recorded strong gains during the session.
The buying extended across several sectors, although smaller companies lagged behind the benchmark indices.
The Nifty MidCap index rose 1.06%, while the Nifty SmallCap index posted a modest gain of 0.11%.
Among sectoral indices, Nifty IT recorded the strongest performance as investors increased their exposure to technology companies. Realty and consumer durables stocks also advanced, reflecting improved investor appetite for equities.
Pharmaceutical stocks bucked the broader market trend, with the Nifty Pharma index ending lower.
Market analysts said the Nifty’s move above the 22,600 resistance level and subsequent advance past 22,700 signaled renewed buying interest.
“On the upside, 22,800 remains a crucial resistance level that the index must decisively breach and sustain above to extend the recovery toward the psychologically important 23,000 mark,” market analysts said.
They identified 22,600 as an important near-term support level, with additional support around 22,300 if the market loses momentum.
“On the downside, 22,600 has now emerged as an important support zone, while 22,300 remains a key lower support level. Holding above 22,600 will be essential to sustain the recovery momentum,” analysts said.
Investors are also watching corporate earnings for the September quarter, particularly results from major technology companies, for indications of business performance amid global economic uncertainty.
“The strong IT-led start and expectations of a decent overall Q2 corporate performance suggest the market is pricing in resilience despite a challenging external environment,” analysts noted.
The session’s gains reflected renewed optimism among investors, supported by stronger technology stocks, expectations for corporate earnings and the possibility of further dialogue over India’s stock market tax structure. (Source: IANS)
