Indian stock market indices Sensex and Nifty today jumped over 3%, extending Friday’s gains as the sentiment turned positive after the government last week cut effective corporate tax rate. The Sensex today rose 1,075 points to settle at 39,090, adding to Friday’s 1,921-point gain. The two-day gain has pushed up investor wealth by over ₹10 lakh crore. Here are 10 things to know about the 2-day Sensex rally:

1) Banking stocks have outperformed in the two sessions with Nifty Bank index rising 14% during this period. Banking heavyweights ICICI Bank and HDFC Bank today hit new 52-week highs.

2) FMCG heavyweights HUL (+3.5%) and ITC (7%) also rose today with analysts saying that financials and FMCG sectors will be one of the key beneficiaries of corporate tax rate cut.

3) IT stocks however saw some profit-taking today with Infosys losing 5% and TCS 2.5%.

4) "The 10% corporate tax reset has witnessed frantic buying across high tax paying entities in the last two trading sessions. The rebalancing act has led to selling in IT and pharmaceuticals with a shift towards manufacturing and private banks and select FMCG stocks," said S Ranganathan, head of research at LKP Securities.

5) Harsha Upadhyaya, CIO (Equity) at Kotak Mahindra Asset Management Company, said: “The decision to lower corporate taxes meaningfully is a key structural measure to support India's growth outlook. One of the key objectives of the sharp cut in corporate tax rates is to make India globally competitive. This step significantly boosts medium-term investment potential in the economy."

6) Many brokerages have upgraded their earnings estimate as well as Sensex targets after the corporate tax cut. The tax cuts have also prompted Morgan Stanley to raise its June-2020 target for Sensex back to 45,000 after slashing it to 40,000 just two weeks ago.

7) Some analysts have turned cautious after the sharp upmove in past two sessions. “Indian markets are trading near peak valuations so we would remain cautious on the markets and expect it to consolidate in the near term. However, the recent announcements made by the FM are definitely positive for the Indian economy from a long-term perspective. Hence, investors should focus on accumulating fundamentally sound stocks," said Ajit Mishra, vice president of research at Religare Broking.

8) Shrikant S. Chouhan of Kotak Securities, said: “We need to be cautious while adding long positions at current levels," citing a spike in India VIX or the volatility index, which jumped 11% today.

9) In terms of technicals, Ruchit Jain, technical analyst at Angel Broking, said Nifty has support in the range of 11400-11300 whereas the near term resistances are seen around 11705 and 11800.

10) Some analysts remain positive on midcap and smallcap stocks that have also participated in the two-day rally. “Mid and small caps are likely to catch in a big way going ahead," said Amit Shah, technical research analyst with Indiabulls Ventures.

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