Sensex crosses 40,000 mark again
The Sensex had made huge gains in May-June following the NDA victory and touched a high of 40312.07 on June 4, 2019.
Mumbai: The Sensex on Wednesday regained the 40000 level after a gap of more than four months. Gaining for the fourth consecutive session, the index closed at 40051.87, up 220.03 points.
The broader Nifty-50 Index also closed 0.40 per cent, or 57.25 points, to end at at 11844.10.
The market's gain in the last four sessions came largely on the back of good second quarter earnings announced by blue chip companies, auto and retail sales picking up during the festival season as well as the buzz in the market that the government may rationalise securities transaction related long-term capital gains tax, dividend distribution tax and the securities transaction tax .
But the Sensex's 40K level can be largely credited to corporate tax cut announced by the government last month, which led to better second quarter earnings and festival season sales.
The broader market, however, is yet to recover, as the measures announced by the government are likely to benefit large-caps, analysts said. The Nifty-50 is up 15.54 per cent per cent in the last one year but the Nifty Midcap-50 Index is down 0.77 per cent.