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  Business   Market  24 Jan 2018  Sensex 36,139, Nifty 11,083

Sensex 36,139, Nifty 11,083

THE ASIAN AGE.
Published : Jan 24, 2018, 12:41 am IST
Updated : Jan 24, 2018, 12:41 am IST

IMF’s growth prediction helps markets continue winning momentum.

According to the provisional data released by the stock exchanges, foreign portfolio investors bought shares worth Rs 1229.35 crore while the domestic institutions picked up stocks worth Rs 169.03 crore.
 According to the provisional data released by the stock exchanges, foreign portfolio investors bought shares worth Rs 1229.35 crore while the domestic institutions picked up stocks worth Rs 169.03 crore.

MUMBAI: Continuing with their winning momentum, the equity markets soared to yet another record high on Tuesday after International Monetary Fund (IMF) said India is set to regain the tag of fastest growing major economy in the world in FY19 with a projected growth rate of 7.4 per cent as against 6.7 per cent estimated for the current fiscal.

The better than expected results from India Inc has also renewed optimism regarding a strong recovery in corporate earning growth.

The Nifty zoomed past 11K-level for the first time without any resistance and closed the day at 11,083.70, up 117.50 points or 1.07 per cent. The 30-share Sensex too scaled above the crucial 36K level to end the trading session at 36,139.98, up 341.97 points or 0.96 per cent.    

While the underlying sentiments remain upbeat, experts said that the markets are likely to see a short-term correction if the government imposes long-term capital gain (LTCG) tax on equity markets in any form.

Instead of reintroducing LTCG tax, reports suggests that the government is likely to increase the holding period of stocks from one year to three years to be considered as long term gain. This means any gain arising out of equity sales within a period of three years would attract short-term capital gain (STCG) tax of 15 per cent.

In its India equity strategy report, analysts at Bank of America Merrill Lynch said that a new long-term capital gain tax on equities would not only hurt market sentiment, but can also hurt domestic equity flows. Maintaining a cautious view on the markets due to stretched valuations, BoAML has kept a year-end target of 32,000 for the Sensex, which is 11 per cent lower from the current levels.     

According to the provisional data released by the stock exchanges, foreign portfolio investors bought shares worth Rs 1229.35 crore while the domestic institutions picked up stocks worth Rs 169.03 crore.

“Due to last Friday’s strong move by the Nifty from 10,800 levels, the magical figure of 11,000 followed by 11,100 was on cards. But the velocity at which market hastened in couple of days has certainly turned out to be a jaw-dropping move for many traders. This is a sheer euphoric environment that we are experiencing at this moment. It appears as if the traders’ fraternity has kept a lot of expectations from this upcoming Budget and hence, probably the anticipation is adding fuel to this ‘No Negative is as good as positive’ kind of scenario,” said Sameet Chavan, derivative analyst at Angel Broking.

Tags: nifty, sensex