The benchmark indices notched new 52-week highs in noon trade, boosted by of higher advance tax numbers from a few corporates. This led to hopes of strong earnings for the September quarter.
Bajaj Auto paid an advance tax of Rs 170 crore for the July-September quarter vs Rs 50 crore in the previous quarter. Ambuja Cements paid an advance tax of Rs 150 crore for the July-September quarter vs Rs 70 crore in the previous quarter. SBI’s second quarter advance tax stood at Rs 1,832 crore.
PwC expects strong advance tax numbers from companies in the auto, PSU banks and power generation space.
The Sensex was up 223 points at 16,437, led by gains in metal and realty stocks. It had clocked a new 52-weak high when it hit 16,448. Nifty was up 79 points at 4,888 after clocking fresh 52-weak high of 4,890 in intraday trade today.
Among the Sensex stocks, DLF was up over 4 per cent to be the biggest gainer among the pack. Tata Steel, Sterlite Ind, and SBI were also up over 2 per cent.
Asian markets were mixed on Tuesday after Wall Street shrugged off trade tensions between the US and China to end at its highest point in nearly a year.