Published 19:33 IST, September 20th 2019
Sensex soars 1900 points post corporate tax rate cut by FM Sitharaman
Sensex closed on Friday at an unprecedented 5.32 per cent high at 38,014.62 points, as FM Nirmala Sitharaman made another big announcement to boost the economy
Advertisement
The Bombay Stock Exchange (BSE) Sensex closed on Friday at an unprecedented 5.32 per cent high at 38,014.62 points, as Finance Minister Nirmala Sitharaman made another big announcement in order to boost the economy. The 30-shared index 2,284.55 points to a peak of 38,378.02 points. The Sensex went up by 1921.15 points.
The beneficiaries
While the Sensex index soared to a peak of 38,378.02 points, the Nifty skyrocketed to 11,275.45 points after gaining 5.33 per cent from 570.65 points. The top gainers in the Sensex pack included HeroMoto Corp, Maruti Suzuki, IndusInd Bank, Bajaj Finance, State Bank of India and Bajaj Finance, gaining at a range of 9 to 12 per cent. However, other companies like PowerGrid, Infosys, TCS, NTPC, and Tech Mahindra ended up losing up to 2.39 per cent.
The big boost's outcome
In a major boost to the economy, the government has taken measures to promote investment and growth in the market. The government has decided to not levy the enhanced surcharge introduced in the Budget on the capital gain. Further, the super-rich will not be applicable to capital gains from the sale of any security including derivatives in hands of foreign portfolio investors. In this, the FM has also said that all the companies that have announced a buyback of shares prior to July 5 will not be charged with the super-rich tax. Further, the corporate tax has been cut down to 25.17 per cent inclusive of all the cess and surcharges for domestic companies. Along with this, all the revenue that is foregone on reduction in corporate tax and other relief measures will be Rs. 1.45 lakh crore annually, stated Sitharaman.
PM Modi on the economy boost
Prime Minister Narendra Modi on Friday tweeted about the economic boost, appreciating Finance Minister Nirmala Sitharaman's announcements. He stated that the government is moving towards boosting India's opportunities and businesses.
The announcements in the last few weeks clearly demonstrate that our government is leaving no stone unturned to make India a better place to do business, improve opportunities for all sections of society and increase prosperity to make India a $5 Trillion economy.
— Narendra Modi (@narendramodi) September 20, 2019
17:29 IST, September 20th 2019