Sensex, Nifty Recover On Likely Tax Relief For FPIs
Closing Bell: Sesnex, Nifty End Higher On Likely Tax Relief For FPIs
Indian equity benchmarks closed higher for the first time this week as government may soon roll back of superrich tax on foreign investors announced in the Budget last month.
The S&P BSE Sensex rose 0.63 percent to close at 36,701.16 and the NSE Nifty 50 gained 0.82 percent to 10,829.35. The broader markets represented by the NSE Nifty 500 Index advanced 0.82 percent.
“The expectation is the surcharge on foreign portfolio investors may be ruled out,” said Dharmesh Kant, head of retail research at Indianivesh Securities, told Bloomberg, “Investors who were sitting on short positions have squared it off to play it safe for Monday.”
The market breadth was tilted in favour of buyers. About 1,019 stocks advanced and 768 shares declined on National Stock Exchange.
Eight of the 11 sectoral gauges compiled by NSE ended higher, led by the NSE Nifty Metal Index’s 4.18 percent gain. Nifty FMCG Index was the top sectoral loser, down 0.49 percent.
Den Networks At Over One-Year High
Shares of the cable TV operator gained for the fifth straight session, rising as much as 9.8 percent intraday to Rs 97.70 apiece. The stock has risen 38.5 percent so far this week.
Den Networks' stock has gained 37 percent since Aug. 12, when Reliance Industries announced that Jio Fiber broadband service will be launched pan-India on Sept. 5.
The relative strength index on the stock was over 70, indicating it may be overbought.
Den Networks’ shares have risen 46 percent since Oct. 17, 2018, when Reliance Jio Infocomm Ltd. said it would acquire a majority stake in the company and GTPL Hathway Ltd. to expand its broadband reach and pool of cable subscribers.
Sensex Jumps Over 200 Points; Nifty Tests 10,850
Indian equity benchmarks traded higher as government mulled a rollback of superrich tax on foreign investors announced in the Budget last month.
The government is working on steps to give cushion to the economy, a Bloomberg report said, citing an official.
The S&P BSE Sensex rose 0.66 percent to 36,717.40 and the NSE Nifty 50 rose 0.84 percent to 10,822 as of 2:20 pm. The broader markets represented by the NSE Nifty 500 Index advanced 0.80 percent.
The market breadth was tilted in favour of buyers. About 996 stocks advanced and 761 shares declined on National Stock Exchange.
Nine of the 11 sectoral gauges compiled by NSE traded higher, led by the NSE Nifty Metal Index’s 3.27 percent gain. Nifty FMCG Index was the top sectoral loser, down 0.45 percent.
Vedanta Jumps Close To 6%; Top Nifty Performer
Shares of the mining conglomerate snapped its three-day fall and rose as much as 5.9 percent to Rs 136.60 apiece.
Zambian Minister Richard Musukwa, in an emailed statement, said the government was open to any progressive talks that will facilitate amicable exit of Vedanta from Konkola Copper Mines.
The stocks fell 37 percent in the past 12 months compared to a 5 percent fall in the Nifty Index.
Markets Are In A State Of Capitulation, Says KRChoksey Investment Managers
Good quality stocks are also falling as investors are now selling "jewels" to make up for the losses made in the other parts of their portfolio. That’s according to Deven Choksey, managing director, KRChoksey Investment Managers.
"Unfortunately, the victims of the market sell-off are good quality mid-cap stocks," said Choksey in an interview to BloombergQuint. "The fund managers and investors are compelled to sell these stocks for liquidating and generating cash in their portfolio."
Container Corporation Of India Jumps After Morgan Stanley Initiates Coverage
Shares of the state-owned railway cargo services provider rose 5.75 percent, the most in five months, to Rs 510.05 each.
Brokerage firm Morgan Stanley started coverage on the stock with an ‘Overweight’ rating. It also fixed the target price at Rs 566 apiece, indicating a potential upside of 13.4 percent from last close.
Here’s what the brokerage firm had to say on the stock:
- Dedicated Freight Corridor initiative should benefit Container Corp – a dominant player.
- Rail to gain share post DFC commissioning, fostering quicker and more predictable movement of goods.
- Expect 12 percent earnings compounded annual growth rate over financial years 2019-22.
The stock traded 17 percent below the Bloomberg consensus one-year target price.