The benchmark indices, the Sensex and Nifty were trading higher afternoon today, after the Income Tax Dept soothed the worries of FPIs over a potential increase in tax liability. Both the indices were trading higher by nearly 0.3% on fresh foreign fund inflows and strong Asian cues. At 1.30 pm, the BSE Sensex, was up 40 points at 27,275 and the NSE Nifty was up 19 at 8,417. Except oil & gas and PSU, all other BSE sectoral indices were trading with positive bias.
The metal index gained the most by 2.15%, followed by consumer durables 1.05%, capital goods 0.97% and FMCG 0.8%, and on the down side, oil & gas index was down 0.64% and PSU 0.12%. The Nifty Bank index gained as much as 1.1% to hit its highest since November 17, 2016 with HDFC Bank and ICICI Bank gained nearly 1%.
The annual budget-2017 is due on February 1st, and investors anticipate for incentives to maintain an economy hit by cash crunch after demonetization.