Mumbai: The BSE Sensex advanced over 2000 points to a high of 38,094, while the Nifty crossed 600 points at 2 pm, while domestic investor wealth soared by Rs 2.11 lakh crore in morning trade on Friday as equity market rallied following a slew of economy-boosting announcements by Finance Minister Nirmala Sitharaman.
Led by the spike in equities, the market capitalisation of BSE-listed companies climbed Rs 2,11,086.42 crore to Rs 1,40,79,839.48 crore in the immediate aftermath of the announcement.
From the 30-share Sensex basket, barring NTPC, all other 29 scrips were trading in the green led by Tata Steel, Maruti Suzuki India, HDFC Bank and Yes Bank, which were trading with gains of up to 5.7 per cent.
The rupee also rallied 66 paise to 70.68 against the US dollar on announcements made by the finance minister.
In a major fiscal booster, the government on Friday slashed effective corporate tax to 25.17 per cent inclusive of all cess and surcharges for domestic companies.
India Inc welcomes tax cuts
Industry, stock market and experts cheered slashing of corporate tax rate and other announcements by Finance Minister Nirmala Sitharaman saying the big bang reforms will push economic growth and investments.
“Reducing corporate tax rate to 25 per cent is big bang reform. Allows Indian companies to compete with lower tax jurisdictions like the US. It signals that our government is committed to economic growth and supports legitimate tax abiding companies. A bold, progressive step forward, Kotak Mahindra Bank CEO Uday Kotak said in a tweet.
Biocon CMD Kiran Mazumdar Shaw also applauded Finance Minister Nirmala Sitharaman. “Corporate tax rate cut from 30 per cent to 25.2 per cent to spur growth- this is a great move which will firmly revive growth and investment. My hats off to FM @nsitharaman for this bold but most needed move,” she tweeted.
Ashok Maheshwary & Associates LLP Partner Amit Maheshwari said “lately we have been losing a lot of investments to other Asian countries who had been consistently reducing their corporate tax rate. This will help attract significant FDI and manufacturing to India. Abolition of DDT and going back to classical way of taxing dividends would be an icing on the cake”.