Sensex trades above 40,000-mark

Anticipation of more economic reforms such as strategic divestment of state-run companies and tax cuts, helped to lift the S&P BSE Sensex to above the 40,000-mark for the first time in the last five months.

Sensex reclaims 40,000-mark for first time since June; Nifty ends at 11,844.

The bull run in markets continued on Wednesday with the benchmark BSE sensex rising over 200 points, reclaiming the 40,000-mark for the first time since June, as investors hoped for more tax sops. Investor sentiment also remained positive amid better-thatn-expected corporate results and sustained foreign fund inflows.

Top gainers in the sensex pack include State Bank of India (SBI) TCS, ITC, Bharti Airtel, Sun Pharma and Infosys with their shares up as much as 3.43 per cent.

On NSE, sub-indices Nifty PSU Bank and Nifty IT witnessed major gains, up as much as 3.84 per cent.

The government has already slashed corporation tax rate to 15 per cent for new companies in the month of September. This had set off speculation about a reduction in personal income tax.

Subsequently, even positive global cues, expectations of healthy quarterly results and hopes of a sales boost on the back of the festive season also pushed the equity indices higher.

Healthy buying was observed in capital goods, oil and gas, IT, FMCG and banking stocks, whereas scrip of consumer durables and metal companies came under heavy selling pressure.

At around 2.30 p.m., the S&P BSE Sensex traded at 40,064.40, higher by 232.56 points or 0.58 per cent from the previous close of 39,831.84.

It had opened at 40,055.63 and has so far touched an intra-day high of 40,178.12 and a low of 39,805.11.

Indo-Asian News Service