Immediately after Finance Minister Nirmala Sitharaman announced government’s proposal to cut tax rate for domestic companies and for new domestic manufacturing companies, Sensex jumped by 2,102.40 points touching 38,195.87 on Friday. Today’s gain marked the highest single-day gain since May 2009, which saw an 18 per cent hike after the UPA regime emerged victorious.
Domestic equity benchmark BSE Sensex which opened to a rebound of 100 points, zoomed following Sitharaman’s announcements whereas, Nifty rallied 562 points to 11,267.70. The 30-share index was trading at 119 points, or 0.33 per cent, higher at 36,212.74 at 0930 hours, while the broader Nifty rose 23.90 points, or 0.22 per cent, to 10,728.70, PTI had reported.
Sensex jumps 1900 points or 5.26 per cent; highest single day gain since 18 per cent spike seen on May 18, 2009 when UPA II emerged victorious @IndianExpress
“New domestic manufacturing companies incorporated after October 1 can pay income tax at 15 pc rate without any incentives or can pay income tax at a rate of 22 pc subject to the condition that they will not avail any incentive,” the Finance Minister announced.
Domestic investor wealth soared by Rs 2.11 lakh crore in morning trade. Led by the spike in equities, the market capitalisation of BSE-listed companies climbed Rs 2,11,086.42 crore to Rs 1,40,79,839.48 crore.
Top gainers in the Sensex pack today, when it opened for early trade, included Yes Bank, Maruti, Hero MotoCorp, Kotak Bank, HUL, M&M, Bajaj Auto and IndusInd Bank. The rate cut hopes and a slew of measures undertaken by the government to boost the ailing economy boosted investor sentiment, experts told PTI.
While closing yesterday, the 30-share index had crashed 470 points settling at 10,704.80 points which was 1.29 per cent lower.
-with agency inputs