Sensex skyrockets over 1000 points, Nifty climbs 329 points; Bharat Petroleum, HDFC Bank, ITC shares gain

Stock Market Today: The Indian indices extended its corporate tax cut rally for second straight trade session. The BSE Sensex gained 1075 points after closing at 39,090 levels while the 50-stocks Nifty logged 329 points gain after closing at 11,603 levels. The Bank Nifty index registered 1566 points and climbed over 30K after closing at 30,548 levels.

Speaking on the current bullish trend at various Indian indices Prakash Pandey, MD and CEO at Plutus Advisors said, "This rise in the Indian indices is mainly caused by the recent corporate tax rate cut announced by the finance minister Nirmala Sitharaman. This bullish trend at Sensex, Nifty, Bank Nifty and other Indian indices are expected to continue amid some profit booking as the overall trend of the Indian stock market is still bullish." Pandey said that those stocks that are domestic driven like Banking, Auto, Consumer Durables are expected to outperform other sectors. On stocks that investors can think of taking a buy position, Pandey said that Axis bank and Kajaria Ceramics are the stocks that a stock market investor can think of buying at current levels.

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Nagaraj Shetti, Technical Research Analyst, HDFC securities said, "The sharp upside momentum continued in the market for the second consecutive session today and the Nifty registered yet another phenomenal one-day gains of around 329 points in today's session. A reasonable long candle was formed today with minor upper and lower shadow with sharp opening upside gap. This pattern indicates a sharp upside momentum prevailing in the market. Though Nifty placed at the hurdle of the previous lower top at 11,700 of 17th July, still there is no indication of any reversal pattern in the Nifty at the highs." Shetti said that the short-term trend of Nifty is sharply positive, having moved up sharply in the last couple of sessions, there is a possibility of consolidation/minor downward correction at the highs before showing further upside. The near term upside levels to be watched at 11,800, Shetti said.

Banking stocks witnessed fresh buying by the FIIs as the Bank Nifty index shot up 5.68 per cent from the previous trade session. Banking major Axis Bank share price soar 6.97 per cent in the intraday trade session, shares of HDFC Bank went northward 4.41 per cent, ICICI Bank shares scaled 5.83 per cent, IndusInd Bank counter added 6.16 per cent, Kotak Mahindra Bank stocks jump near 6 per cent while State Bank of India added 4.08 per cent today.

Consumer Durable stocks witnessed heavy buying in the intraday trade as the BSE Consumer Durable index rose 6.55 per cent today. consumer Durable major Larsen & Toubro share price shot up 9 per cent, shares of Siemens went up 8.93 per cent, Kalpataru Power Transmissions shares soared 7.34 per cent, Honeywell Automation India counter rose 6.39 per cent, Bharat Heavy Electricals Ltd or BHEL stocks added near 3 per cent while NBCC (India) shares rose 4.93 per cent.

Bharat Petroleum or BPCL, HDFC Bank, ITC, ICICI Securities, Escorts were the major gaining stocks while Reliance Capital, Birlasoft, PetronetLNG, Reliance Communications or RCom stocks were the major losing stocks in the intraday trade.