Sensex reclaims 40,000 mark

Mumbai: The BSE Sensex rallied 220 points to reclaim the 40,000-mark on Wednesday as strong corporate earnings and expectations of a rejig in tax structure for equity investors turbocharged sentiment.

After hitting a high of 40,178.12, the 30-share index ended 220.03 points, or 0.55 per cent, higher at 40,051.87. The benchmark closed above the key 40,000-level after June 4, 2019. Similarly, the broader NSE Nifty jumped 57.25 points or 0.49 per cent to close at 11,844.10.

Brokers said equity market sentiment improved after reports said the government is looking at scrapping the dividend distribution tax and is also reviewing other levies such as long-term capital gains tax (LTCG) and securities transaction tax (STT).

Strong earnings delivery from bluechips and meaningful contribution from the corporate tax cut to profits coming through has also boosted market mood, they added. Sectorally, BSE IT, teck, oil and gas, FMCG, capital goods, utilities, telecom and energy indices gained up to 1.47 per cent.

However, consumer durables, realty, metal and auto indices fell up to 0.98 per cent. Broader BSE midcap and smallcap indices ended up to 0.65 per cent higher. On the global front, markets awaited cues from the US Federal Reserve's policy decision.

Bourses in Shanghai, Hong Kong, Seoul and Tokyo ended on a negative note amid reports of a possible delay in the US-China trade deal. Meanwhile, the Indian rupee depreciated 6 paise to 70.91 against the US dollar intra-day. Brent crude futures, the global oil benchmark, slipped 0.54 per cent to $61.26 per barrel.