India’s stock market closed in the green on Monday, July 23, with the BSE Sensex hitting a new high. Upbeat sentiment was driven by the government’s decision to cut taxes on a wide range of goods, which, in its turn, boosted consumer stocks. Recapping the benchmarks, the Nifty 50 advanced 0.68% to 11,084.75, while the BSE Sensex closed 0.61% higher at 36,718.60. By 11:00 GMT, the USD/INR currency pair traded up 0.12% to 68.831, while EUR/INR climbed 0.06% to 80.6270. The 10-year government bond yield stood at 7.819%. ITC and Hindustan Unilever surged 3.63% and 2.14% after the government’s decision to cut taxes. Meanwhile, shoes manufacturer Bata India spiked 7.55%. The company drew support from a strong earnings report for the first fiscal quarter. Among the session’s best performers, agrochemical company UPL shot up 15.52% on news that it intends to acquire Platform Specialty Products for USD 4.2 bn. HDFC Bank underperformed, falling 1.8% on weaker-than-expected quarterly earnings. In addition to UPL, top gainers on the Nifty 50 included Vedanta and Bajaj Finserv, rising 4.1% and 3.84%. Among the decliners, Hero Motor and Bajaj Auto sank 6.58% and 5.34%. The daily chart shows that the BSE Sensex, while trading within a rising band, reached a new high. The Slow Stochastic Oscillator has long been in overbought territory. In view of the above, upside potential is limited in the short term.