Expectations of a tax bonanza for the stock markets from the government lifted the key Indian equity indices on Tuesday too.
The upside momentum propelled the Nifty to close at a 4-month high of 11,787. The S&P BSE Sensex closed at 39,831.84 points, 581.64 points or 1.48 per cent higher from the previous close of 39,250.20 points.
There is expectation that the PMO and the Finance Ministry are working on measures which may include dividend distribution tax (DDT) to be scrapped and a review of the existing slabs and holding period of long term capital gains (LTCG), short term capital gains (STCG) and securities transaction tax (STT).
The market immediately lapped up the news gaining ground on a day that also threw positive global cues and expectations of healthy quarterly results from a sales boost coming from the ongoing festive season.