Equity benchmark indices skyrocketed on the euphoria among investors with the Sensex and Nifty clocking the biggest single-day gains in a decade. The indices ended up by 5.3% each.
The Sensex finished up by 1,921 points and the Nifty rose 569 points. Market sentiment was electrified after Finance Minister Nirmala Sitharaman announced slashed corporate tax rates for domestic companies and new manufacturing firms.
All sectoral indices ended in the green, except IT, as investors cheered the long-overdue tax relief India Inc. had been demanding.
, Reliance Industries
, ICICI Bank
, and Kotak Bank
were the top contributors to the surge in Sensex.
, Maruti Suzuki
, Eicher Motors, IndusInd Bank
, Bharat Petroleum, and State Bank of India
(SBI) were the top gainers on the NSE.
(HUL), Nestle India
, Bata India, Avenue Supermarts
(D-Mart), Asian Paints, Berger Paints, Colgate-Palmolive India and GlaxoSmithKline Consumer Healthcare hit their respective all-time highs after the government announced a fiscal measure to revive the animal spirits in the Indian economy.
Besides the tax cuts, announcements such as the withdrawal of the enhanced surcharge on capital gains from sale of securities for FPIs and certain domestic investor categories lifted spirits.
The optimism was further supported by the withdrawal of buyback tax on companies who announced buybacks before July 5, 2019.
The FM said that these measures would cost the government Rs1.45 lakh cr of revenue.
Investors will now keenly watch the outcome of the ongoing GST meet in Goa with GST rate cuts on sectors such as auto and hotels widely expected among market participants.