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Sensex Surges Over 1,400 Points, Nifty Near 11,700; ITC Shares Jump

Sensex, Nifty today: Corporate tax announcements by the government have led to the rally in markets and boosted the investor sentiment, say analysts.

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Sensex, Nifty today: Buying across sectors barring IT and pharma shares pushed the markets higher

Domestic equity benchmarks cheered the government's move to cut corporate tax rates for the second session in a row, with the S&P BSE Sensex index surging 1,426.5 points on Monday afternoon outperforming Asian peers. The broader NSE Nifty 50 benchmark surpassed the 11,650 mark to touch 11,694.85 at the days strongest level, after clocking the biggest single-day gain in over a decade last Friday. The Sensex touched an intraday high of 39,441.12. Buying across sectors barring IT and pharma shares pushed the markets higher, with banking, auto and consumer goods stocks being the top gainers. Corporate tax announcements by the government have led to the rally in markets and boosted the investor sentiment, say analysts.
Here are 10 things to know about the big gains in the markets today:
  1. At 1:05 pm, the Sensex traded 1,291.93 points - or 3.40 per cent - higher at 39,306.55, while the Nifty was up 373.65  points - or 3.31 per cent - at 11,647.85.
  2. Top percentage gainers on the 50-scrip index at the time were Larsen & ToubroIndusInd Bank, Bajaj Finserv, Bajaj Finance, ITC and Britannia, trading between 7.13 per cent and 8.91 per cent higher.
  3. HDFC Bank, HDFCICICI Bank, L&T and ITC  were the top contributors to the surge in Sensex. They collectively contributed more than 1,000 points to the upmove in Sensex.
  4. The Nifty Bank sectoral index - comprising shares of 12 major lenders in the country - jumped as much as 6.28 per cent. Prominent gainers included State Bank of India (SBI) and Punjab National Bank (PNB), gaining as much as 4.23 per cent and 3.04 per cent respectively.
  5. Analysts said the recent reforms by the government are a big positive for the markets.
  6. "A mega bull market is starting now on the back of the reforms of the century for India... I don't think we will be looking back anytime soon," AK Prabhakar, head of research at IDBI Capital, told NDTV.
  7. The Nifty Fast-Moving Consumer Goods (FMCG) index jumped as much as 6.63 per cent, led by ITC and Britannia - which rose as much as 9.43 per cent and 20.12 per cent respectively in intraday trade.
  8. "ITC has got a triple bonus, in the form of the ban on e-cigarettes, the cut in corporate taxes and the reduction in GST on hotel room tariffs," said Mr Prabhakar.
  9. Last Friday, the GST Council decided to more than double the tax on caffeinated beverages to 40 per cent while lowering the tax rate applicable to hotel room tariffs. Earlier the same day, the government slashed corporate tax by almost 10 percentage points in a bid to revive economic growth.
  10. Finance Minister Nirmala Sitharaman said early on Monday that the government's move on corporate tax has sent a positive message "not just in India" but around the globe.




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