Sensex Recovers 700 Points Amid Tax Relief and Falling Crude Prices
Sensex rises 700 pts from day's low, Nifty above 23,450: 3 key reasons behind markets turning green
Image: Moneycontrol
The BSE Sensex and NSE Nifty indices rebounded sharply from earlier lows, with the Sensex recovering 700 points to reach 74,533.12. Key factors for this recovery include a proposed tax relief for foreign investors, easing geopolitical tensions, and a decline in crude oil prices.
- 01The Sensex dropped to 73,807.30 before recovering to 74,533.12, while Nifty rose to 23,459.75.
- 02The Indian government is expected to introduce an ordinance to eliminate taxes on foreign portfolio investments in government securities.
- 03A ceasefire agreement between Israel and Lebanon has improved investor sentiment amid ongoing geopolitical tensions.
- 04Brent crude oil prices fell to USD 96.86 per barrel, positively impacting India's import costs and inflation.
- 05The Nifty Smallcap 100 and Nifty Midcap 100 indices rose by 0.7% and 0.8%, respectively.
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On Thursday, the BSE Sensex and NSE Nifty indices experienced a significant recovery from their intraday lows, with the Sensex climbing 700 points to 74,533.12 and Nifty reaching 23,459.75. Initially, the Sensex fell by 538.87 points to 73,807.30 and Nifty dropped by 158.3 points to 23,247.30. The recovery was driven by three main factors: 1) a proposed ordinance by the Indian government to remove taxes on foreign portfolio investments in government securities, aimed at attracting foreign capital amidst a weakening rupee; 2) improved investor sentiment following a ceasefire agreement between Israel and Lebanon, easing geopolitical concerns; and 3) a decline in Brent crude oil prices, which fell 0.97% to USD 96.86 per barrel, benefiting India's import costs and inflation control. The broader market also showed strength, with gains in the Nifty Smallcap 100 and Nifty Midcap 100 indices.
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The proposed tax relief is expected to attract more foreign investments, which could stabilize the Indian equity market and strengthen the rupee.
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