BSE Sensex jumps WHOPPING 582 pts, Nifty 159; here is BIG reason why
The Indian stock markets witnessed tremendous boost after Diwali break. The reason behind this major upward movement was on account of buzz created by reports of equity tax rationalisation. Investors looked to cash-in on these reports although nothing official has emerged.
The Indian stock markets witnessed tremendous boost after Diwali break. The reason behind this major upward movement was on account of buzz created by reports of equity tax rationalisation. Investors looked to cash-in on these reports although nothing official has emerged. Markets ended with hefty gains on Tuesday, with the Nifty breaking out of its recent highs after a period of consolidation, to close above the 11700 levels. The Nifty gained 159.7 points or 1.37% to close at 11,786.85. Sources indicated that the government is reviewing equity-related tax rate rationalisation. This boosted investor and trader sentiments.
Deepak Jasani, Head of Retail Research, HDFC Securities said,''Broad market indices like the BSE Mid Cap and Small Cap indices gained less, thereby underperforming the Sensex/Nifty. Even then the midcap indices touched 1 month highs. Market breadth was positive on the BSE/NSE. Sectorally, the top gainers were the BSE Auto, Metal, IT and Capital Goods indices. The top loser was the BSE Telecom index, added Jasani.
Jasani also said that the major Asian markets were mixed on Tuesday as investors monitored further developments on the U.S.-China trade front, with the two economic powerhouses working toward a deal. European stocks traded lower on Tuesday morning as traders monitored earnings, progress in U.S.-China trade discussions and a fresh push from U.K. Prime Minister Boris Johnson for an early general election.
Technically, the short term uptrend of the Nifty still remains intact. Further upsides are likely once the immediate resistance of 11824 is taken out. Crucial supports to watch for resumption of weakness are at 11708-11632, mentioned Jasani.
Commenting on other sectors, Jasani added, ''Telecom stocks remained under pressure as an after effect of the recent adverse Supreme Court decision. Tata Motors continued to rise after JLR posted better than expected results and brokerages upped their target price on Tata Motors. Metal stocks were in demand as chances of an early US China deal on trade brightened. Stressed financials (including some Banks) bounced as negative news in the space ebbed. Auto and IT services stocks were also in demand.''
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