Indian equities surged 1.6% on Tuesday, marking the largest single-day gain in over two months. This rally followed finance minister Nirmala Sitharaman's remarks on transaction taxes, which sparked hopes of a review. Sunny Agrawal said, "The rally was (led by) expiry-related short covering." IT stocks also helped the market climb higher.
Indian equities surged 1.6% on Tuesday, marking the largest single-day gain in over two months. This increase followed remarks by finance minister Nirmala Sitharaman regarding potential changes to transaction taxes. The rally was supported by a rise in IT stocks despite ongoing concerns over crude oil prices and foreign investor selling. Short-covering ahead of expiry also contributed to the market gains.
Mumbai: Indian equities surged 1.6% on Tuesday, their biggest single-day gain in more than two months, as finance minister Nirmala Sitharaman's remarks on stock market transaction taxes raised hopes of a possible review, triggering short-covering. A rally in IT stocks amid a selloff in AI-related shares in South Korea and Taiwan added to the gains. The Nifty 50 rose 1.6% to close at 22,722, while the Sensex advanced 1.54% to 73,034. The rally came amid continued concerns over elevated crude oil prices, foreign investor selling and the conflict in West Asia.
Sitharaman acknowledged the debate over the securities transaction tax (STT) but stopped short of indicating any proposed change. "It's healthy to have this debate, and I will be keenly hearing them," she said. India's taxes on stock market transactions have drawn criticism for being excessive and higher than those in many other markets.
"The rally was (led by) expiry-related short covering," said Sunny Agrawal, head of fundamental research, SBI Capital Securities.