The headline indices extended gains for the second straight session on Friday, helping the stock market to post their first ever weekly gains after 5 weeks.
The headline indices extended gains for the second straight session on Friday, helping the stock market to post their first ever weekly gains after 5 weeks. The Sensex jumped 255 points to 37,582, while the Nifty closed above the 11,100-mark on reports that the Narendra Modi-led government will soon rollback the recently imposed tax surcharge. After rallying 480 points during the day, the 30-share Sensex closed 254.55 points or 0.68% higher at 37,581.91.It hit an intra-day high of 37,807.55 and a low of 37,406.26. The broader Nifty ended 77.20 points or 0.70% Higher at 11,109.65.
During the day, the Nifty clocked a high of 11,181.45 and a low of 11,062.80. In a bid to boost investor confidence, the Finance Ministry is working on a package for capital markets, which may include withdrawal or some tweaking of the long-term capital gains tax (LTCG), ET Now reported citing government sources. Top gainers in the Sensex included Maruti Suzuki, Bajaj Finance, Vedanta, HDFC twins, HUL, Kotak Bank and ICICI Bank, ending up to 3.4% higher.
Notably, the Sensex had been on a losing spree since the Narendra Modi-led government announced the Union Budget for FY20 on July 5th. Last week, the Sensex and Nifty registered their second biggest weekly fall in since January. However, reports that the government is looking to rationalise the LTCG tax, and also provide a relief package to spur up the economy has boosted investor sentiment. Sensex, Nifty and Nifty Bank posted a gain of 1% for the week ended Friday. In the week, Heromotocorp, Bharti Airtel, HCL Tech, Maruti Suzuki and Bajaj finserv were the biggest gainers, jumping up to 9.20%. On the other hand, shares of Tata Steel, UPL, Yes Bank, Tata Motors and Cipla were the biggest Nifty losers shedding up to 11.50%.
Taking stock of today’s session, Shrikant Chouhan, Head Technical Research, Kotak Securities said that Nifty Auto and Finance companies have helped indices to close higher on daily and weekly basis, however on the other side, Nifty Metal and Nifty PSU Bank indices closed lower. “On weekly basis, many blue chip mid cap stocks closed higher with substantial gains, which is an indication that inflows have begun in mid cap stocks,” he said. Meanwhile, the Indian rupee is trading 12 paise down at 70.81 against the US dollar.