Sensex Crosses 40k, Nifty Closes 4-Month High

Mumbai, October 30: The Indian indices as on October 30, 2019, continued their upward trend on the hope of more tax sops from the government on equity markets. 

The S&P BSE Sensex reached a high of 40,178.12 during the intraday, while NSE Nifty reached high of 11,883.95.

 “Yesterday’s strong broad-based rally was followed by a decent bump up at the opening today. However, it was merely a formality as we immediately witnessed index correcting back to its previous close. Fortunately, the correction was restricted within first half an hour and thereafter, index continued its gradual march towards the opening point. Despite some small hiccups in the latter half, index managed to close well inside the positive territory,” said Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel Broking. 

 That said, the Sensex closed at 40,051.87 by 220.30 points up, whereas on the NSE, the Nifty50 index ended at 11,844 up by 57 points or 0.49 per cent to close at a 4-month high. Some of the top gainers among the Nifty stocks included ITC, Infosys, TCS, Reliance Industries, SBI, GAIL, Grasim and L&T. 

“Sentiment has been boosted on hope of government to cut Long term capital gain tax, dividend distribution tax and the Securities Transaction Tax (STT). Moreover, improved auto sales growth during the festival sessions, good quarterly results and stable oil and the dollar-rupee have added fuel in the market. In the global market, global markets are witnessing caution ahead of outcome of US Fed policy meeting today. Market hope that the US Fed to cut interest rate by 25bps,” said Ajay Menon, Managing Director & CEO – Broking & Distribution, Motilal Oswal Financial Services. 

Under broader markets, BSE Midcap and Smallcap index also witnessed gain of 0.7 per cent and 0.4 per cent respectively. The sectoral indices were in green with FMCG, IT and Oil & Gas gaining in the range of 1.2-1.5 per cent. “We believe the market trend in the near term will be driven by corporate earnings and thus stock specific volatility may remain high. Further, any favourable announcement from the government could help sustain the momentum,” said Ajit Mishra, Vice President, Research, Religare Broking.