Sensex jumps 777 points; RIL, ONGC surge after cut in windfall tax

Mumbai (Maharashtra) [India], July 20 (ANI): The Indian stock market's key indices rallied by around one-and-a-half per cent on Wednesday led by strong buying support in IT, banking and energy stocks on positive cues from the global equities and cut in windfall tax on fuel exports.
The 30 stock S&P BSE Sensex was trading 777.48 points or 1.42 per cent higher at 55,545.10 points at 1.45 pm against its previous day's close at 54,767.62 points.
Earlier, the Sensex started the day sharply higher at 55,486.12 points and rose to a high of 55,630.26 points in the intra-day.
This is the fourth straight day of the rally in the Indian equities markets. The Sensex had gained 246.47 points or 0.45 per cent on Tuesday.
The broader Nifty 50 of the National Stock Exchange surged 215.80 points or 1.32 per cent to 16,556.35 points against its previous day's close at 16,340.55 points.
The Nifty started the day sharply higher at 16,562.80 points and rose to a high of 16,588.00 points in the intra-day.
The Nifty has extended the rally to the fourth straight day. The Nifty had gained 62.05 points or 0.38 per cent on Tuesday.
Reliance Industries Limited surged after the government reduced the windfall tax on diesel and aviation fuel shipments by Rs 2 a litre and scrapped completely a Rs 6 per litre levy on gasoline exports. The government has also reduced the tax on domestically produced crude by 27 per cent to Rs 17,000 per tonne.
The cut in windfall tax will improve energy margins. Reliance Industries Limited was the biggest driver of the rally in the Indian equities markets. RIL was trading 2.62 per cent higher at Rs 2505.05. Oil and Natural Gas Corporation (ONGC) surged 4.24 per cent to Rs 132.85.
IT stocks rallied. Tech Mahindra jumped 3.93 per cent to Rs 1047.20. TCS surged 2.66 per cent to Rs 3157.05. HCL Technologies rose 2.69 per cent to Rs 913.95.
Infosys, Wipro, State Bank of India, Titan, Hindustan Unilever, HDFC Bank and IndusInd Bank were among the major Sensex gainers.
Only five of the 30 scrips that are part of the benchmark Sensex were trading in the red. Mahindra & Mahindra slipped 1.53 per cent to Rs 1168.10. Sun Pharma, Power Grid Corporation, Bharti Airtel and NTPC were also trading in the red. (ANI)