Sensex rallies 220 points to reclaim 40,000 mark; SBI spurts 3 pc

Mumbai: Market benchmark BSE Sensex reclaimed the 40,000-mark on Wednesday, rallying 220 points on the back of strong corporate earnings and expectations of a rejig in tax structure for equity investors.

After hitting a high of 40,178.12, the 30-share index ended 220.03 points, or 0.55 per cent, higher at 40,051.87. Similarly, the broader NSE Nifty jumped 57.25 points or 0.49 per cent to close at 11,844.10.

Top gainers in the Sensex pack included SBI, TCS, ITC, Bharti Airtel, Sun Pharma, Infosys and Bajaj Auto, rising up to 3.37 per cent. On the other hand, Yes Bank, Maruti, IndusInd Bank, ICICI Bank and Bajaj Finance fell up to 2.41 per cent.

According to experts, a proposed review of key taxes such as long term capital gains, securities transaction tax and dividend distribution tax before the Budget has boosted domestic investor sentiment.

Strong earnings delivery from bluechips and meaningful contribution from the corporate tax cut to profits coming through has also boosted market mood, they added. Further, the market is awaiting cues from the US Federal Reserve's policy decision, scheduled to be announced later in the day.

Bourses in Shanghai, Hong Kong, Seoul and Tokyo ended on a negative note amid reports of a possible delay in the US-China trade deal. Exchanges in Europe were trading on a mixed note in their respective early deals.

Meanwhile, the Indian rupee depreciated 6 paise to 70.91 against the US dollar intra-day. Brent crude futures, the global oil benchmark, slipped 0.54 per cent to USD 61.26 per barrel.