Mumbai: The benchmark BSE Sensex jumped 220.03 points or 0.5% to close past the psychologically crucial level of 40,000 in Wednesday’s trade. The index closed at 40,051.87, driven by heavyweights like State Bank of India, Tata Consultancy Services and Infosys.
ITC and Sun Pharmaceuticals were also among the top five gainers of the day. All five shares rose between 1.5% and 3.4%.
Reports that the government is considering further tax reforms also boosted sentiment. The Prime Minister’s Office (PMO) and the finance ministry are discussing the abolition of the dividend distribution tax (DDT), a review of individual tax slabs, and a change in the holding period of assets to be eligible for tax savings, news agency IANS had reported. The steps are likely to be announced before or in the Union Budget in February.
The BSE Bankex was among the top gainers among sectoral indices, rising 3.6%. United Bank gained around 20% to close at ₹8.90 after the bank reported a profit of ₹124 crore for the quarter ended September against a loss of ₹833 crore a year ago. Central Bank surged around 18% to close at ₹21.15 after the bank said its board approved raising up to ₹3,353 crore via allotment of shares on a preferential basis to the government.
Meanwhile, Bandhan Bank lost 1.47% to close at Rs614.35 after the Reserve Bank of India (RBI) imposed a penalty of ₹1 crore on the lender for non-compliance with guidelines on promoter shareholding.
InterGlobe Aviation shares rose 7% as the company, which operates IndiGo, will soon place a "record" order for Airbus A320neo family aircraft, including the latest long range Airbus A321XLR planes.
Bharti Infratel Ltd tumbled 5% to close at ₹183.30.The stock was the biggest loser in the BSE's 'A' group. On the BSE, 10.90 lakh shares were traded on the counter as against the average daily volumes of 5.64 lakh shares in the past one month.
BEML surged 4.39% to close at ₹1052.90 after media reports suggested that the government has revisited plan for strategic stake sale in the company. The government may soon issue expression of interest (EoI) for 26% stake sale in BEML with management control. Government of India holds 54.03% stake in BEML as on 30 September.
In the broader market, the S&P BSE Midcap index was up 0.65%. The S&P BSE Smallcap index rose 0.36%. The market breadth was positive. On the BSE, 1,382 shares rose and 1,120 shares fell. A total of 170 shares were unchanged.