Why Sensex rallied over 500 points today

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Updated: September 9, 2015 3:15:15 PM

The BSE Sensex and NSE Nifty opened on a strong note on Wednesday tracking firm global markets and continued across-the-board buying.

sensex and niftyThe BSE Sensex and NSE Nifty opened on a strong note on Wednesday tracking firm global markets and continued across-the-board buying. (Express Photo)

The BSE Sensex and NSE Nifty opened on a strong note on Wednesday tracking firm global markets and continued across-the-board buying.

At 1.15 pm, Sensex climbed over 500 points at 25,820.56. The 50-share Nifty index was up 146 points at 7,835 during the same time.

Below are the reasons why Sensex jumped over 500 points today

1. Global markets: Asian shares surged with markets in China stabilising and Japanese stocks posting their biggest one-day gain since the height of the global financial crisis in 2008.Japan’s Nikkei soared 7.7 per cent, its biggest single-day gain since October 2008, apparently galvanized by hopes of corporate tax cuts. China major stock indices rose in early trading on Wednesday, extending Tuesday’s nearly 3 per cent gain.

2. Indian rupee opened on a strong note against the dollar and advanced by 24 paise to 66.31 against in early trade following sustained selling of the US currency by banks and exporters.

3. Finance Minister Arun Jaitley said the government in the next few days will bring out a list of tax exemptions to be phased out as part of the exercise to reduce corporate tax rate to 25 per cent in four years.

4. Telecom stocks were trading higher after the Union Cabinet cleared spectrum trading guidelines under which telecom operators will be able to sell radiowaves to other service providers, a move that will help address the problem of spectrum shortage.

5. Prime Minister Narendra Modi’s meeting with representatives of corporate India on weathering the global economic turbulance also helped the market sentiment.

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