Sensex jumps 220 points, crossing 40000 mark!

Indian equity benchmarks gained over half a per cent on Wednesday, on the back of better-than-expected corporate earnings from some frontline companies. This was the second consecutive day of rise for the domestic markets, crossing the crucial 40,000 (Sensex) and 11,850 (Nifty) level.

Markets extended northwards in afternoon session, as local investors cheered with a report that the finance ministry and regulators are reviewing the possibility of scrapping the dividend distribution tax (DDT). It is also considering rationalization of the long-term capital gains (LTCG) taxation structure by classifying three asset classes against six at present.

With a view to attract overseas investors, the government is looking at the possibility of relaxing further foreign direct investment (FDI) norms in different sectors. Foreign investment is allowed through automatic route in most of the sectors, but in certain areas such as defense, telecom, media, pharmaceuticals and insurance, government approval is required. In some sectors like telecom, insurance, banking, and media, there is cap on FDI limit.

The BSE Sensex ended at 40051.87, up by 220.03 points or 0.55% after trading in a range of 39805.11 and 40178.12. There were 20 stocks advancing against 11 stocks declining on the index. The all time high recorded by Sensex is at 40312.07 on June 04, 2019.

The broader indices ended in green; the BSE Mid cap index rose 0.65%, while Small cap index was up by 0.36%.

The top gaining sector indices on the BSE were PSU up by 1.64%, IT up by 1.55%, TECK up by 1.42%, Oil & Gas up by 1.39% and Capital Goods up by 1.26%, while Consumer Durables down by 1.02%, Realty down by 0.99%, Metal down by 0.27%, Auto down by 0.15% and Consumer Discretionary Goods & Services down by 0.04% among the top losing indices on BSE.

The top gainers on the Sensex were SBI up by 3.39%, TCS up by 2.82%, Bharti Airtel up by 2.61%, ITC up by 2.23% and Sun Pharma up by 2.17%.

Whereas the top losers included Yes Bank down by 2.23%, Maruti Suzuki down by 2.07%, IndusInd Bank down by 1.71%, Bajaj Finance down by 1.35% and ICICI Bank down by 1.24% among the top losers.