Published 10:39 IST, September 23rd 2019
Sensex gains over 900 points and Nifty rises over 300, post tax cut
Sensex skyrocketed at a 3.34% high at over 39,000 points, and the NIFTY soared at a 3.63% high at over 300 points on Monday, in a major boost to the economy
The Bombay Stock Exchange (BSE) Sensex skyrocketed at a 3.34 per cent high at over 39,000 points, and the National Stock Exchange of India (NIFTY) soared at a 3.63 per cent high at over 300 points on Monday, leading to a major boost to the Indian economy. This hike has come even after the markets soared on Friday where the Sensex closed at an unprecedented 5.32 per cent high at 38,014.62 points and Nifty skyrocketed to 11,275.45 points after gaining 5.33 per cent from 570.65 points. The economic developments have come after the Finance Minister, Nirmala Sitharaman had made announcements to boost the economy, especially after the announcement of cutting down the corporate tax rate.
About corporate tax rate
With the Finance Minister Nirmala Sitharaman announcing the sharp cut in the corporate tax rates in the country, India has now become one of the countries with a low tax rate. This move is helping the market economy sector immensely. The government had announced that 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. After this announcement, the market soared on Friday and even higher on Monday. 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.
Other announcements
Apart from the big move to cut down the corporate tax rate, the government has taken measures to promote investment and growth in the market to boost the Indian economy. The government decided to not levy any enhanced surcharge introduced in the Budget on the capital gain. With this, the super-rich tax has also been removed. According to FM Sitharaman, all the companies that have announced a buyback of shares prior to July 5 will not be charged with the super-rich tax.
Updated 14:10 IST, September 23rd 2019