Sensex Jumps 1,109 Points as Sitharaman’s Remarks on LTCG, STT Boost Market Sentiment

Indian equity markets rebounded sharply on Tuesday, with the Sensex surging 1,109.10 points, or 1.54 per cent, to close at 73,033.78, while the Nifty gained 358.60 points, or 1.6 per cent, to settle at 22,721.95.

Investor sentiment improved after Finance Minister Nirmala Sitharaman said she was open to hearing market participants’ views on long-term capital gains (LTCG) tax and securities transaction tax (STT), describing the debate as healthy.

Technology stocks led the rally, with HCL Technologies and Tata Consultancy Services (TCS) among the top Nifty gainers. Shriram Finance also featured among the day’s strong performers.

The Nifty MidCap index rose 1.06 per cent, while the SmallCap index edged up 0.11 per cent. Among sectoral indices, Nifty IT recorded the strongest gains, followed by advances in Realty and Consumer Durables. Nifty Pharma was the major laggard.

Market analysts said the Nifty moved above the 22,600 resistance zone and crossed 22,700 amid sustained buying. They identified 22,800 as the next key resistance, with a possible move towards 23,000 if the index breaks above it and sustains the gains. On the downside, 22,600 is an important support level, followed by 22,300.

Analysts also cited expectations of a reasonable second-quarter corporate earnings performance as a factor supporting market resilience despite a challenging external environment.