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Rupee Surges By 65 Paise Against Dollar After Corporate Tax Cut: 10 Things To Know

After starting the session higher at 71.20, the rupee moved to 70.67 against the greenback at the day's highest level.

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Rupee Surges By 65 Paise Against Dollar After Corporate Tax Cut: 10 Things To Know

At 1:20 pm, the rupee traded 34 paise - or 0.48 per cent - higher at 70.98 against the US currency.

The rupee gained by as much as 65 paise against the US dollar on Friday, after the government announced its decision to lower the corporate tax rate on domestic firms and new manufacturers. After starting the session higher at 71.20, the rupee moved to 70.67 against the greenback at the day's highest level. Analysts say that the reduction in corporate tax cut boosted the financial markets. At 1:20 pm, the rupee traded 34 paise - or 0.48 per cent - higher at 70.98 against the US currency.
Here are 10 things to know about rupee:
  1. ."The news of government lowering corporate tax has rejoiced the market and gave rupee a big boost... The move was imperative as we are in a low demand cycle amid global idiosyncrasies," said Rahul Gupta, currency research head, Emkay Global Financial Services.
  2. The government slashed effective corporate tax to 25.2 per cent inclusive of all cess and surcharges for domestic companies
  3. Finance Minister Nirmala Sitharaman also said super-rich tax will not apply on capital gains arising from sale of any security including derivatives in hands of FPIs.
  4. Ms Sitharaman expressed confidence that the tax concessions will bring investments in Make in India, boost employment and economic activity, leading to more revenue.
  5. After the corporate tax rate cut accouncement, the S&P BSE Sensex index zoomed as much as 2,284.55 points to 38,378.02. The broader NSE Nifty benchmark index climbed to as much as 11,381.90, up 677.1 points from the previous close. 
  6. While markets "have reacted positively to FM's announcement, there are concerns over deteriorating fiscal situation", cautioned Rushabh Maru, currency and commodity analyst with Anand Rathi Shares and Stock Brokers.
  7. The loss of revenue to the tune of Rs 1.450 lakh crore ($20.43 billion) through corporate tax cuts "will add to the fiscal mess", he added.
  8. The dollar index, which gauges the greenback's strength against a basket of six currencies, meanwhile, fell 0.03 per cent to 98.23.
  9. Brent crude futures, the global oil benchmark, rose 0.43 per cent to trade at $64.68 per barrel.        
  10. Foreign institutional investors (FIIs) remained net sellers in the capital market, pulling out Rs 892.52 crore on Thursday, according to provisional exchange data.




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