The Indian benchmark indices have continued rallying for the fourth straight day as Sensex heads towards recording its new peak. The BSE Sensex closed above the 40,000 mark. The performance of the Indian stock markets has been way better than expected over the last month.
A possible reason behind this stellar show of the Indian markets is higher corporate earnings than anticipated. Also, the rumours of tax rejig on the equity front has fuelled rallying of the Indian markets. The BSE Sensex closed at 40,051 points, which happens to be its third-highest close in its history.
The NSE Nifty too is having a good run, it closed at 11,844 points, gaining nearly 60 points yesterday. Nifty is witnessing a structured growth and can test the range of 12,100 to 12,250 shortly. The Indian public sector banks such as Bank of Baroda, PNB and SBI gained in the range of 3% and 3.5%.
Also Read: Nifty and Sensex Could Be in for Significant Gains in the Coming Days
The market giants such as RIL and Infosys gained 0.8% and 1.5% respectively while TCS and ITC and each rose nearly 2.5%. Apart from the benchmark indices, other indices such as BSE midcap index and smallcap index rose 0.36% and 0.65% respectively.
The gains seen in the benchmark indices are triggered by the growth boosters which were announced in two sets by Nirmala Sitharaman, the Finance Minister of India. Apart from that, improving global factors such as the Sino-American trade war seeming like ending soon and the UK and the EU reaching an agreement on Brexit.
Another significant factor driving the markets is cuts in the interest rate by the US Federal Reserve and the Reserve Bank of India (RBI). Furthermore, the US Federal Reserve is anticipated to announce another cut in the interest rate by 0.25% points in its upcoming policy review meet. Another reduction in the interest rate would make it third for this year by the US Federal Reserve.
For any clarifications/feedback on the topic, please contact the writer at vineeth.nc@cleartax.in
Engineer by qualification, financial writer by choice. I am always open to learning new things.
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