Indian markets witnessed a rebound on Tuesday from their falls a day earlier, with the Bombay Stock Exchange Sensex rising by 406.34 points to end at 26,213.44, and the National Stock Exchange Nifty ending 124.60 points higher at 8,032.85. Markets were led by buying in blue-chip stocks, with investor confidence being boosted by Finance Minister Arun Jaitley’s remarks on the need for competitive tax structures in the country.
Companies like Adani Ports, ITC and Tata Steel were among the best performers of the day, with ITC being the top gainer on the Sensex with a 4.22% share price rise. Market indices also rallied, with the BSE Midcap and Smallcap indices rising by 1.75% and 1.48%. The BSE’s Consumer Durables sectoral index gained 1.5%, with the Fast-moving Consumer Goods and Information Technology indices rising by 1.44% and 0.99% as well.
However, real-estate companies performed poorly, with nine companies marking 52-week lows on the BSE during trading, according to Business Standard. Geojit BNP Paribas Head of Research Vinod Nair said markets “witnessed a broad-based relief rally, supported by [the] finance minister’s comment[s]”. On Monday, markets reacted sharply to fears of a capital markets tax, with the Sensex and Nifty falling by 233.60 and 77.50 points.
Speaking at the National Academy of Customs Excise and Narcotics, Jaitley had said India needed lower taxes to become globally competitive. Lower taxes will encourage people to comply with norms, he had said. “The voluntary compliance by citizens by payment of due taxes needs to be reciprocated by authorities through a tax-friendly administration.”