The Indian markets managed to put behind a weak opening to record fresh highs by the end of the day. The BSE Sensex gained as much as 358 points and touched its new peak of 40,606 points. The NSE Nifty finally regained 12,000 points after a gap of five months. However, Nifty ended the day little under 12,000.
The BSE Sensex ended the day by gaining 221 points to close at 40,469 points which is its fresh closing high. On the other hand, Nifty ended by gaining 0.37% to close at 11,961 points. Both NSE Nifty and BSE Sensex witnessed a turnaround in the fortunes from their respective openings in the day.
The rallying of the indices was majorly due to the gains recorded by the banking stocks. The NSE Nifty Bank index gained more than 1%. Kotak Bank, Axis Bank, IndusInd Bank, RBL Bank, ICICI Bank and HDFC Banks recorded gains in the range of 1% and 2.5%.
The stocks of Infosys closed the day 2.4% higher. Infosys strongly reproved the claims made by an anonymous source which made whistleblower allegations against cofounders in its stock exchange filing today. The Infosys shares collapsed significantly on the day when whistleblower allegations were made.
L&T, Tata Motors and Hindustan Unilever are the other stocks which saw significant gains. The Indian stock markets were expected to perform this way right after the new government was elected in June 2019. However, things didn’t go as planned and resulted in the benchmark indices losing ground significantly.
But now, the benchmark indices have managed to gain the lost glory. One of the primary reasons for this is the higher corporate earnings in the previous quarters announced by the heavyweights. Also, the Finance Minister announced a cut in the corporate tax rate, much to the delight of companies.
The global factors are also fuelling the rallying of the Indian markets. Another significant factor influencing the stock markets is the expectations of further reforms on the tax front by the government. Furthermore, the Federal Reserve and Reserve Bank of India announced cut in the interest rate, which has boosted the consumption.
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Engineer by qualification, financial writer by choice. I am always open to learning new things.