Sensex Hits All-Time High; Breaks June Record Of 40,312 After Reports Of Tax Reforms, Fed Rate Cuts

Amid buzz of more tax reforms and strategic sale in many public sector undertakings, the Indian markets hit a new high on Thursday (31 October) after Sensex rose 286 points to 40,337. Earlier on 4 June this year, the Sensex has recorded 40,312 points, reports LiveMint.

The broader Nifty also crossed the 11,900 mark, remaining just 200 points away from its all-time high of 12,103 recorded in June.

Sectorally, all the indices were trading in the green. Nifty Realty and Nifty PSU Bank inidces were the top gainers, up nearly 2 per cent, each.

The broader market, too, participated in the rally. The S&P BSE MidCap index was trading over 100 points or 0.84 per cent higher at 14,821 levels while the S&P BSE SmallCap index was ruling at 13,569.34, up over 130 points or 1 per cent, reports Business Standard.

The markets rose in the wake of the US Federal Reserve on Wednesday (30 October) cutting interest rates for the third time this year and reports of government planning tax reforms.

According to reports, stock analysts expect the market to rise over the next few sessions due to strong Q2 earnings and government’s tax realignment plans.

Earlier on Tuesday (29 October), it was reported that Prime Minister's Office (PMO) and the Finance Ministry are working on measures which may include scrapping of dividend distribution tax (DDT), a review of existing slabs and holding period of long term capital gains (LTCG), short term capital gains (STCG) and securities transaction tax (STT).