Stocks climb as India government outlines proposed tax law
India's stocks climbed as the government introduced a tax bill that may lead to lower levies
Mumbai: India's stocks climbed as the government introduced a tax bill that may lead to lower levies and amid expectations the economy expanded at the fastest pace in two and half years.
Oil & Natural Gas Corp climbed to a 34-month high. The government introduced its Direct Tax Code bill to the lower house of parliament on Monday afternoon.
Gross domestic product rose 8.8 per cent in the three months ended June 30 from a year earlier, a statistics office report due on Tuesday at 11am in New Delhi may show. Bharti Airtel gained the most in a week.
The Bombay Stock Exchange's Sensitive Index, or Sensex, gained 33.70, or 0.2 per cent, to 18,032.11 after swinging between gains and losses at least 12 times. The S&P CNX Nifty Index on the National Stock Exchange rose 0.1 per cent to 5,415.45. The BSE 200 Index added 0.1 per cent to 2,312.18.
"The government would like more investor participation in the stock markets," said Jagannadham Thunuguntla, chief strategist at SMC Capitals in New Delhi.
"The new tax code will draw more middle class and long-term investors to the stock markets. The GDP growth numbers are likely to be good, but they have already been factored in by investors. The concern is more on the global economic recovery which is not giving the conviction to buy stocks."
Oil & Natural Gas gained 2 percent to 1,344.15 rupees, its highest close since November 2007. Bharti advanced 2.1 per cent to 322.8 rupees.
