Sensex and Nifty rise as easing oil prices boost markets
The Sensex gained over 750 points on Tuesday morning as investor sentiment was supported by potential tax reviews and lower crude prices.
The Indian stock market recorded sharp gains on Tuesday, with the Sensex rising over 750 points and the Nifty 50 climbing above 23,600. According to reports from The Economic Times, these gains added nearly Rs 4 lakh crore to the total market capitalisation of companies listed on the BSE, bringing the total to Rs 486 lakh crore.
Several factors contributed to the rise, including easing oil prices and hopes regarding a potential long-term capital gains (LTCG) tax review. Finance Minister Nirmala Sitharaman said on Monday that the central government would consider a request from foreign investors to review the tax structure on equity capital gains.
The market also benefited from foreign institutional investor (FII) activity. Provisional data from the NSE showed that foreign investors were net buyers of Indian equities on Monday, purchasing shares worth nearly Rs 3,115 crore.
In the sectoral indices, Nifty Auto, Nifty Financial Services, Nifty FMCG, and Nifty IT all jumped more than 1 per cent. However, Nifty Pharma slipped into the red. Among individual stocks, IndiGo and HDFC Bank shares gained around 3 per cent each, while Reliance Industries shares fell a little over 1 per cent.
Oil prices remained below recent highs, with Brent crude futures trading below $105 per barrel. This follows reports of ongoing talks between Iran and Qatari mediators aimed at ending conflict.