Share markets zoomed after Corporate Tax cut
Domestic equity benchmark BSE Sensex vaulted 1,921 points on Friday, fuelled by a slew of economy-boosting measures announced by Finance Minister Nirmala Sitharaman.
Logging its biggest intra-day spike in over a decade, the 30-share index soared 2,284.55 points to a peak of 38,378.02, before settling 1,921.15 points or 5.32 per cent higher at 38,014.62.
Similarly, the broader NSE Nifty zoomed 569.40 points or 5.32 per cent to end at 11,274.20.
Bulls took over the market after the government slashed corporate tax rates for companies by almost 10 percentage points to 25.17 per cent to bring them at par with Asian rivals such as China and South Korea.
The finance minister also said the government will not levy the enhanced surcharge introduced in the Budget on capital gains arising on sale of equity shares in a companies liable for securities transaction tax.
Also, the super-rich tax will not apply on capital gains from sale of any security including derivatives in hands of foreign portfolio investors.
In another relief, the finance minister said listed companies which have announced buyback of shares prior to July 5 will not be charged with the super-rich tax.
"Markets gave complete thumbs up to the decision as it is expected to give much room for corporate India to reinvest the money into building capacity and fuel growth for the long term while providing immediate support to its waning earnings in the near term," said Narendra Solanki, Head Fundamental Research (Investment Services) - AVP Equity Research, Anand Rathi Shares & Stock Brokers.
The Sensex and Nifty clocked their highest one-day gain in over a decade on the back of these announcements.
Top gainers in the Sensex pack included Hero MotoCorp, Maruti, IndusInd Bank, Bajaj Finance, SBI, M&M, HDFC Bank, HUL and L&T, rallying up to 12.52 per cent.
On the other hand, PowerGrid, Infosys, TCS, NTPC and Tech Mahindra ended in the red, losing up to 2.39 per cent.
The rupee too appreciated 29 paise to 71.04 against US dollar following the finance minister's announcements.
Meanwhile, Brent crude futures rose 0.64 per cent to USD 64.84 per barrel (intra-day).
Elsewhere in Asia, Shanghai Composite Index, Nikkei and Kospi ended on a positive note, while Hang Seng settled in the red.
Stock exchanges in Europe were trading higher in their respective early sessions.
Also Read | Corp tax cut 'surgical strike' on negative sentiments in economy: Analysts
Watch | Finance Minister Nirmala Sitharaman announces big change in taxation laws
