Sensex Crosses 40,000 Level For The First Time Since July, Nifty Hits 11,800

Benchmark indices gained further momentum in trade today, on hopes that there could be some changes in capital gains tax and dividend distribution tax.

BSE's Sensex rose as much as 68 points to 40,100, crossing the 40,000-level, which it had achieved in the month of July. Previously, Sensex has hit its all-time high of 40,312 on 4 June 2019.

NSE's Nifty 50 crossed the 11,800 level to a high of 11,835.

According to an IANS report, the Finance Ministry is in discussions to abolish dividend distribution tax and review tax slabs.

Nifty Bank index crossed the 30,000-level in trade today with shares of HDFC Bank and Punjab National Bank rising 1 percent each.

Shares in Reliance Industries were lower as the government was weighing options of terminating the production-sharing contract or invoking arbitration to penalise RIL for selling to itself all the coal bed methane gas that it produces in violation of policy.

Shares in Lakshmi Vilas Bank was locked at the lower end of the circuit filter for the second day in a row.

Bhel was up a staggering 13 per cent, after an upgrade by CLSA.

The rupee meanwhile lost 8 paise at 70.92 against the US dollar. Most of the Asian markets were trading lower ahead of the US Fed decision on interest rates.