Nifty, Sensex Clock Best Day In 10 Years After Corporate Tax Cut: Highlights
Domestic stock markets notched their best day in more than a decade after Finance Minister Nirmala Sitharaman announced cuts in corporate tax rates. The S&P BSE Sensex index rocketed as much as 2284.55 points to touch 38,378.02 during the session, marking its biggest intraday jump since May 18, 2009, and the broader NSE Nifty benchmark added 677.1 points to 11,381.90 in intraday trade. Both the benchmark indices jumped 6.33 per cent during the session. Gains across sectors - led by banking, auto metal shares - pushed the benchmark indices higher. The Finance Minister said the effective corporate tax rate would be lowered to 25.2 per cent, and scrapped the minimum alternative tax for domestic companies. Analysts say the reduction in corporate tax rate is a big positive for the markets. The new tax structure is effective from April 1, 2019, and new companies formed from October 1 will attract a base tax rate of 15 per cent, instead of 30 per cent, Nirmala Sitharaman said. Analysts said that the measures to lower the corporate tax outgo on domestic companies boosted investors' sentiment.