Sensex Jumps 1,075 Points As Heavy Buying Continues After Corporate Rate Cut
Mumbai: In another development, heavy purchases by foreign institutional investors (FIIs) and domestic traders pushed the equity benchmark indices forward on Monday after the government announced a corporate tax cut last weekend.
The rationalization of the Goods and Services Tax (GST) for some regions also appeased the market sentiment. At the closing, the BSE S&P Sensex was up 1,075 points or 2.8 percent at 39,090 points, while the Nifty 50 was up 329 points at 11,603 points.
All sectoral indices except IT and Pharma were in positive territory with Nifty Private Bank gaining 5.6 per cent, Financial Services 5.3 per cent, FMCG 4.4 per cent and Auto 3 percent on the National Stock Exchange (NSE).
The hotel stock rose after a cut in corporate taxes and rationalization of GST rates. Lemon Tree Hotels grew by 11.3 percent, Indian Hotels by 8.2 percent, ITC by 6.9 percent, Hotel Leelaventure by 3.6 percent and Chalet Hotels by 1.6 percent.
Other major winners were Bharat Petroleum Corporation, which lost 139 percent to close at Rs 459 per share and Indian Oil Corporation which was up 8.4 percent to close at Rs 143.75.
Indian engineering multinational Larsen & Toubro gained 9.1 percent, Bajaj Finance, and Eicher Motors 8.9 percent and Asian Paints 8.2 percent.
Adani Ports, Bajaj Finserv, Axis Bank and Kotak Mahindra Bank also rose more than 7 percent.
However, IT scrap lost. Infosys declined 4.9 percent, Wipro 2.7 percent, and Tata Consultancy Services 2.2 percent.
Meanwhile, most Asian stock markets slipped as investors awaited greater clarity on US-China trade talks following recent negotiations. Oil prices rose 1 percent as Middle East tensions rose.
The Shanghai Composite Index declined by 0,98 percent, while Hong Kong’s Hang Seng index weakened 0.8 percent after a week of violent protests by pro-democracy activists. But South Korea’s Kospi gained a notch higher.
(With ANI Inputs)
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