Benchmark BSE Sensex rose 630 points and Nifty closed over 16,500 on Wednesday amid strong global market trends.
On Wednesday, the benchmark BSE Sensex increased by roughly 630 points. The Nifty finished above 16,500 due to advances in IT and energy amid favourable global market trends. FII inflows and purchases of index heavyweights Reliance Industries, Infosys, and Tata Consultancy Services boosted investor optimism.
As a result of the government’s reduction of the windfall tax on gasoline, diesel, jet fuel, and crude oil, shares of companies involved in oil exploration and refinings, such as Reliance Industries and ONGC, were in high demand.
The BSE Sensex increased 629.91 points, or 1.15 percent, to finish at 55,397.50. It rose 862.64 points, or 1.57 percent, to 55,630.26 during the day. The NSE Nifty rose 180.30 points, or 1.10 percent, to 16,520.85.
As a result of the government cutting the windfall tax on gasoline, diesel, jet fuel, and crude oil, shares of Reliance Industries rose by 2.47 percent while shares of ONGC surged by 4 percent.
“The decrease in windfall tax would result in improved margins that are more likely to be sustainable for businesses like RIL, ONGC, and Oil India, all of which stand to benefit positively from the change. These firms were obvious winners of high oil prices; but the current drop in oil prices, along with one of the highest windfall taxes anywhere in the world, might have a negative impact on profitability “A Vice President of Fundamental Research at Religare Broking Ltd., Rohit Khatri
Strong quarterly earnings boosted world stock markets. Tokyo, Seoul, Shanghai, and Hong Kong markets closed higher after US advances overnight. Europe’s midday markets were generally higher.
Brent crude fell 1.1% to USD 106.1 per barrel. According to market statistics, foreign institutional investors bought 976.40 crore rupees in shares on Tuesday.
