Sensex, Nifty Snap Four-Week Losing Streak On Tax Reversal Hopes
A trader works on the trading floor. (Photographer: Michael Nagle/Bloomberg)

Sensex, Nifty Snap Four-Week Losing Streak On Tax Reversal Hopes

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Closing Bell: Sensex, Nifty End Higher On Tax Reversal Hopes

Indian equity benchmarks closed higher for the second day in a row on optimism that government may drop additional tax on overseas investors.

The S&P BSE Sensex closed 0.68 percent higher at 37,327.36 and the NSE Nifty 50 gained 0.70 percent to close at 11,109.65 . The broader markets represented by the NSE Nifty 500 Index ended 0.75 percent higher.

The meeting of the foreign investors with the Finance Minister Nirmala Sitharaman scheduled today to ease their tax concerns further boosted the market sentiment, said Ajit Mishra, vice president (Research) at Religare Broking, in an email statement.

“We have seen foreign selling taper a bit but the real impact will be seen only once the government actually takes steps to sort the issues in the market and the economy,” Anita Gandhi, director at Arihant Capital Markets told Bloomberg.

The market breadth was in favour of buyers as 1,132 stocks advanced while 608 ended lower. Six of the 11 sectoral gauges compiled by NSE traded higher, led by the NSE Nifty Auto Index’s 2.16 percent gain. The NSE Nifty Metal Index was top sectoral loser, down 0.86 percent.

Sensex, Nifty Snap Four-Week Losing Streak On Tax Reversal Hopes

Yes Bank Falls 9%

Shares of the private lender slumped as much as 9 percent to Rs 81.15 each. The stock was the worst performer on both Sensex and Nifty.

The stock has declined 78 percent in the past 12 months compared to a 1.1 percent fall in the Sensex.

Sensex, Nifty Snap Four-Week Losing Streak On Tax Reversal Hopes

GAIL Rises After June Quarter Results

Shares of the country’s largest gas distributor rose as much as 2.4 percent to Rs 124.85 each.

Key Highlights (QoQ)

  • Revenue down 2.4 percent to Rs 18,311 crore.
  • Ebitda rose 34 percent to Rs 2,259 crore.
  • Ebitda margin to 12.3 percent versus 9 percent
  • Net profit up 14.7 percent to Rs 1288 crore.

The stock traded 8.4 times its 20-day average, Bloomberg data showed.

Also read: Q1 Results: GAIL’s Profit Meets Estimates

MRF Rises After June Quarter Results

Shares of the tyre maker rose 3.7 percent, the biggest intraday day gain, to Rs 56,700 each.

Key Highlights (YoY)

  • Revenue up 15.1 percent to Rs 4,470.8 crore.
  • Net profit rose 2.1 percent to Rs 273.3 crore.
  • Ebitda rose 4.6 percent to Rs 612.3 crore.
  • Margin at 13.7 percent versus 15.1 percent.

Also read: ICRA Sees Tyre Industry’s Revenue Growth Falling To 3-4% In 2019-20

Spicejet Gains After Q1 Results

Shares of the country’s second largest airliner rose as much as 5.5 percent to Rs 143.45 each.

Key Highlights (YoY)

  • Revenue rose 35.2 percent to Rs 3,002.8 crore.
  • Net profit was Rs 262 crore versus net loss of 38 crore
  • Ebitdar rose 88 percent to Rs 684 crore.
  • Operating margin stood at 22.8 percent versus 16.40 percent.

The stock advanced 60 percent in the last 12 months compared with a 1 percent fall in the Sensex.

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