Upward rally continues, indices close at 2 month-high
Indian equity markets showcased yet another spectacular performance on Monday, supported by government's decision to cut corporate tax rate. The benchmark indices ended at 2-month closing high with Sensex settling above crucial 39,100 mark, while Nifty ending just shy of 11,600 mark.
Markets started off the Monday session with decent gains as sentiments remained upbeat with Finance Minister Nirmala Sitharaman’s statement that India has become a highly competitive investment destination post corporate tax reduction as the rates are now lower than that in China and most Southeast Asian countries.
Domestic sentiments were also buoyed with Niti Aayog Vice Chairman Rajiv Kumar’s statement that Rs. 1.45 lakh crore tax giveaway is unlikely to widen fiscal deficit much as the shortfall will be met through increased tax collections due to higher growth which the massive tax cuts are expected to achieve.
Meanwhile, expressing confidence over growth of Indian economy, RBI governor Shaktikanta Das said that GDP numbers for Q2 will be better than the previous one as the government has started spending again. Attributing the 5 per cent GDP growth in Q1 to very low government spending, he said with the Centre opening its coffers again, growth should pick up going forward.
The BSE Sensex ended at 39123.22, up by 1108.60 points or 2.92 per cent after trading in a range of 38674.04 and 39441.12. There were 16 stocks advancing against 15 stocks declining on the index. The broader indices ended in green; the BSE Mid cap index rose 3.01 per cent, while the BSE Small cap index was up by 2.75 per cent.
The top gaining sectoral indices on the BSE were Capital Goods up by 6.57 per cent, Bankex up by 5.76 per cent, Industrials up by 5.16 per cent, FMCG up by 4.36 per cent and Consumer Discretionary Goods & Services up by 3.66 per cent, while IT down by 3.39 per cent, TECK down by 3.16 per cent, Utilities down by 0.87 per cent, Telecom down by 0.66 per cent and Healthcare down by 0.46 per cent were the top losing indices on BSE.
The top gainers on the Sensex were Bajaj Finance up by 8.76 per cent, Asian Paints up by 8.47 per cent, Larsen & Toubro up by 8.09 per cent, ICICI Bank up by 7.31 per cent and Axis Bank up by 7.10 per cent.
On the flip side, Infosys down by 4.98 per cent, Power Grid down by 4.38 per cent, Tata Motors down by 4.16 per cent, Tata Motors - DVR down by 3.73 per cent and NTPC down by 3.42 per cent were the top losers.