Sensex rises 1,921 points
Domestic equity benchmark BSE Sensex rose 1,921 points on Friday, fuelled by a slew of economy-boosting measures announced by finance minister Nirmala Sitharaman.
Logging its biggest intraday 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 on par with Asian rivals such as China and South Korea.
The finance minister also said the government would not levy the enhanced surcharge introduced in the Budget on capital gains arising on the sale of equity shares in a company liable for securities transaction tax.
Additionally, the super-rich tax will not apply on capital gains from the sale of any security, including derivatives in hands of foreign portfolio investors.
In another relief, Sitharaman said listed companies which had announced a buyback of shares before July 5 would 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 gains in over a decade on the back of the 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 the US dollar following the finance minister’s announcements.
Meanwhile, Brent crude futures rose 0.64 per cent to $4.84 per barrel (intraday).
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.