Indian equity markets staged a strong recovery on Tuesday, with benchmark indices ending higher after Finance Minister Nirmala Sitharaman welcomed discussions on long-term capital gains (LTCG) tax and securities transaction tax (STT).
The BSE Sensex jumped 1,109.10 points, or 1.54 per cent, to close at 73,033.78. The NSE Nifty climbed 358.60 points, or 1.6 per cent, to settle at 22,721.95.
FM Sitharaman said she remained keen to hear market participants’ views on LTCG tax and STT, describing the debate over market-related taxation as healthy. Her remarks improved investor confidence and triggered broad-based buying across sectors.
Technology stocks spearheaded the gains, with HCL Technologies and Tata Consultancy Services (TCS) emerging among the Nifty’s top performers.
Shriram Finance featured among the session’s leading gainers.
The rally extended to broader markets, although mid-cap and small-cap stocks lagged the benchmark indices.
The Nifty MidCap index advanced 1.06 per cent, while the Nifty SmallCap index edged up 0.11 per cent.
Among sectoral indices, Nifty IT recorded the strongest gains as investors accumulated technology shares.
Nifty Realty and Nifty Consumer Durables ended firmly in positive territory, while Nifty Pharma closed lower, emerging as the biggest sectoral laggard.
Market analysts said sustained buying pushed the Nifty above the 22,600 resistance zone and beyond 22,700. They identified 22,800 as the next crucial resistance level.
A sustained break above it could open the way towards the psychologically significant 23,000 mark.
On the downside, 22,600 now serves as immediate support, followed by 22,300.
Analysts attributed the technology-led rally partly to expectations of resilient second-quarter corporate earnings, despite a challenging external environment.
Also Read: Stock Market Today: Sensex Rises 27 Points, Nifty Opens Flat
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