After Finance Minister Nirmala Sitharaman announced a slew of measures to revive the economy, domestic equity benchmark BSE Sensex zoomed more than 1,800 points on Friday, September 20.
The S&P BSE Sensex traded at 38,011.36 at 12:15 hours while the NSE's Nifty50 index was ruling at 11,067.75, up 362.95 points. Nifty registered its biggest single-day gain in 10 years. Nifty market cap was up at Rs 2.5 lakh crore.
The government has given a major booster dose to the market by deciding not to levy the enhanced surcharge introduced in the budget on capital gains arising from the sale of equity shares in a company liable for a securities transaction tax. FM Nirmala Sitharaman also proposed to slash corporate tax for domestic companies and new domestic manufacturing companies to 25.17 percent, inclusive of all cess and surcharges for domestic companies.
Also, the super-rich tax will not apply on capital gains from the sale of any security including derivatives in hands of foreign portfolio investors.
In another relief, the minister said listed companies which have announced a buyback of shares prior to July 5 will not be charged with super-rich tax.
The government has also slashed corporate tax to 25.17 percent inclusive of all cess and surcharges for domestic companies.
Sitharaman said the revenue foregone on reduction in corporate tax and other relief measures will be Rs 1.45 lakh crore annually. This, she said, is being done to promote investment and growth.
The 30-share index zoomed 1326.65 points, or 3.68 per cent, to 37,420.12 at 1120 hours, while the broader Nifty rose 362.95 points, or 3.39 per cent, to 11,067.75.
Top gainers in the Sensex pack included Maruti, M&M, HDFC Bank, Tata Motors, Yes Bank, Tata Steel, L&T, ICICI Bank, Bajaj Auto and RIL, rallying up to 9 per cent. On the other hand, TCS and NTPC were trading in the red. The rupee too appreciated 66 paise to 70.68 against US dollar following the finance minister's announcements.