Mumbai / Markets opened on a strong note, Sensex crossed the 40,000 mark for the first time since July

Hindustan Times : Oct 30, 2019, 10:57 AM

The Sensex crossed the 40,000 mark, the first time since July 5 as markets opened on a strong note on Wednesday. The Sensex had hit an all-time high of 40,312 on June 4 this year.

Handsome corporate earnings from some frontline companies and expectations of tax realignment on equities have lifted the sentiment in Indian markets. In early trade, Sensex rose as much as 268 points to 40,100. The broader Nifty had also rose to 11,883 at day’s high.

Investor wealth soared by Rs 2.73 lakh crore on Tuesday in a buoyant equity market where the BSE benchmark zoomed 581.64 points helped by encouraging quarterly results and US-China trade deal optimism.

The 30-share Sensex jumped 581.64 points to close at 39,831.84. During the day, it advanced 666.81 points to 39,917.01. The market capitalisation of BSE-listed firms soared Rs 2,73,355.21 crore to Rs 1,52,04,693.34 crore.

“A strong momentum is seen in the market as healthy Q2 earnings from big corporate and attractive valuation for mid & small caps is providing a favourable risk-reward to investors.

“The clouds over global market are gradually settling down with developments in trade deal and Brexit, while rate cut expectation from (US) FED will further add impetus to emerging markets like India,” Vinod Nair, Head of Research, Geojit Financial Services Ltd said, reports PTI

Expectations of a tax bonanza for the stock markets from the government lifted the key Indian equity indices on Tuesday .

There were reports on Tuesday that the government was working on measures that may include dividend distribution tax (DDT) to be scrapped and a review of the existing slabs and holding period of long term capital gains (LTCG), short term capital gains (STCG) and securities transaction tax (STT).

The market immediately lapped up the news gaining ground on a day that also threw positive global cues and expectations of healthy quarterly results from a sales boost coming from the ongoing festive season.