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Journalism of Courage
Extending gains from the previous session, stock markets rallied another 1.59 per cent on Wednesday, propped by buoyant Asian markets and the announcement of several reforms, including allowing telecom companies to trade spectrum, by the government.
After Wednesday’s 424-point rally, the 30-share index hit the day’s high of 25,820.56 and closed higher by another 401.71 points, or 1.59 per cent, at 25,719.58 — its highest closing since September 3. The index has now gained 826 points in two sessions. The NSE Nifty settled at 7,818.60, higher by 130.35 points, or 1.70 per cent, logging an intra-day high of 7,846.05. The market cheered the Cabinet approved for trading in spectrum among mobile operators, the launch of a gold sovereign bond and a scheme designed to mobilise gold stored in households and temples as part of its efforts to curb demand for the metal.
Finance minister Arun Jaitley also said the government over the next few days will make public a list of tax exemptions to be phased out so as to rationalise the taxation structure.
Further, the rally in global markets tracking overnight gains in Wall Street indices, signs of stability in China on hopes of a government stimulus and Japanese stocks registering their biggest one-day gain of 7.7 per cent since 2008 also lifted the market sentiment. “As the day progressed, announcement of cabinet’s approval of several important proposals i.e. gold monetization, spectrum sharing etc. cheered the participants.
However, the Centre back-tracked on proposal to call a special session of Parliament to pass GST bill citing reason of political deadlock,” said Jayant Manglik, President, Retail Distribution, Religare Securities.
