Sensex surges over 1,100 points as FM's remarks on LTCG, STT boost sentiment
Mumbai, Oct 13
Benchmark equity indices rebounded sharply on Tuesday, recovering from the previous session's losses as investor sentiment improved after Finance Minister Nirmala Sitharaman indicated openness to discussions on key market-related taxes, including long-term capital gains tax and securities transaction tax.
The Finance Minister said she would be keen to hear the views of market participants on LTCG tax and STT, describing such debates as healthy.
Her comments boosted investor confidence and sparked broad-based buying across sectors.
The Sensex climbed 1,109.10 points, or 1.54 per cent, to close at 73,033.78, while the Nifty advanced 358.60 points, or 1.6 per cent, to settle at 22,721.95.
Commenting on Nifty technical outlook, experts said that Nifty staged a strong recovery, with sustained buying interest throughout the session pushing the index decisively above the 22,600 resistance zone and beyond 22,700.
"On the upside, 22,800 remains a crucial resistance level that the index must decisively breach and sustain above to extend the recovery toward the psychologically important 23,000 mark," market watchers stated.
"On the downside, 22,600 has now emerged as an important support zone, while 22,300 remains a key lower support level. Holding above 22,600 will be essential to sustain the recovery momentum," analysts stated.
Technology stocks led the rally, with HCL Technologies and Tata Consultancy Services (TCS) emerging among the top gainers on the Nifty index.
Shriram Finance also featured prominently among the day's best-performing stocks.
The gains extended beyond frontline indices, although broader markets underperformed the benchmarks.
The Nifty MidCap index rose 1.06 per cent, while the Nifty SmallCap index added 0.11 per cent.
Among sectoral indices, Nifty IT registered the strongest gains as investors accumulated technology stocks.
Nifty Realty and Nifty Consumer Durables also ended firmly in the green, reflecting improved risk appetite.
In contrast, Nifty Pharma was the biggest sectoral laggard and closed lower despite the broader market rally.
"The strong IT-led start and expectations of a decent overall Q2 corporate performance suggest the market is pricing in resilience despite a challenging external environment," analysts noted.
— IANS
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