The 30-share BSE Sensex witnessed a sharp acceleration during the final hour of the session, with buying momentum pushing the index above the 73,000 level. The NSE Nifty also moved higher as the market rally gathered pace.
The Nifty had opened almost flat at 22,364, compared with its previous closing level of 22,363 on Monday. However, the index gained momentum as trading progressed and eventually closed at 22,721.95, up 358 points or 1.60%.
The late-session rally lifted market sentiment and delivered substantial gains to stock market investors.
Investors' Wealth Rises by ₹4.15 Lakh Crore
The scale of Tuesday’s rally was reflected in the combined market capitalisation of companies listed on the Bombay Stock Exchange.
At market closing on Tuesday, the BSE market capitalisation stood at ₹4,70,07,567.40 crore, compared with ₹4,65,91,974.21 crore at the close of the previous trading session.
The difference amounted to ₹4,15,593 crore, indicating that investors’ wealth increased by this amount during the session as the market rallied sharply.
Finance Minister's LTCG Remark Triggers Market Reaction
The sharp rally during the final hour followed remarks by Union Finance Minister Nirmala Sitharaman on long-term capital gains (LTCG) and short-term capital gains (STCG) taxes.
Speaking at an event, Sitharaman said the government was fully prepared to listen to investors’ concerns and feedback regarding the LTCG framework.
Her comments were viewed as a significant signal for stock market investors and other stakeholders concerned about capital gains taxation. The remarks came ahead of the Budget, at a time when investors and market experts had been repeatedly demanding the removal or review of the LTCG tax.
In Budget 2024, the Modi government increased the LTCG tax on equities to 12.5%. The decision had raised concerns among a section of stock market participants, and the issue has remained a point of discussion among investors.
The Finance Minister’s statement about the government’s willingness to hear investors’ concerns appeared to provide a boost to market sentiment, coinciding with the sharp gains recorded by the Sensex and Nifty during the final hour of trading.
These 10 Stocks Led Tuesday's Market Rally
Several large-cap and mid-cap stocks recorded strong gains on Tuesday, contributing to the broader market rally.
Among large-cap stocks, HCL Tech shares closed 8.28% higher, while TCS gained 6.59%. Tech Mahindra advanced 4.90%, Infosys rose 4.44%, Hindustan Unilever (HUL) climbed 2.94%, and Trent ended the session 2.61% higher.
The mid-cap segment also witnessed significant buying interest. Mphasis shares gained 5.18%, Coforge advanced 4.46%, Phoenix rose 3.92%, and Persistent Systems closed 3.86% higher.
The gains across these large-cap and mid-cap stocks accompanied the broader rise in benchmark indices, with the Sensex crossing 73,000 and the Nifty settling above 22,700.
Tuesday’s session was marked by a sharp late-trading rally, a rise of ₹4,15,593 crore in the combined market capitalisation of BSE-listed companies, and strong gains in several technology and other major stocks. Finance Minister Nirmala Sitharaman’s remarks on the LTCG framework emerged as a key development during the session, drawing attention to investors’ concerns over capital gains taxation ahead of the Budget.
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