Category : Market Commentary
Headline : Post-Session: Sensex zooms 1,921 pts on FM's tax booster
Date and Time : Sep-20-2019 16:31

Domestic equity benchmark vaulted 1,921 points on Friday, fuelled by a slew of economy-boosting measures announced by Finance Minister Nirmala Sitharaman.

Logging its biggest intra-day spike in over a decade, the 30-share index soared 2,284.55 points to a peak of 38,378.02, before settling 1,921.15 points or 5.32 per cent higher at 38,014.62.

Similarly, the broader NSE Nifty zoomed 569.40 points or 5.32 per cent to end at 11,274.20.

Bulls took over the market after the government slashed corporate tax rates for companies by almost 10 percentage points to 25.17 per cent to bring them at par with Asian rivals such as China and South Korea.

The finance minister also said the government will not levy the enhanced surcharge introduced in the Budget on capital gains arising on sale of equity shares in a companies liable for securities transaction tax.

Also, the super-rich tax will not apply on capital gains from sale of any security including derivatives in hands of foreign portfolio investors.

In another relief, the finance minister said listed companies which have announced buyback of shares prior to July 5 will not be charged with the super-rich tax.

During the day's trade, Sensex touched intraday high of 38378.02 and intraday low of 36085.74 The NSE Nifty touched intraday high of 11381.9 and intraday low of 10691

The top gainers of the BSE Sensex pack were Hero MotoCorp Ltd. (Rs. 2849.40,+12.52%), Maruti Suzuki India Ltd. (Rs. 6585.25,+10.89%), IndusInd Bank Ltd. (Rs. 1419.60,+10.74%), Bajaj Finance Ltd. (Rs. 3705.60,+10.19%), State Bank of India (Rs. 301.70,+10.09%), among others.

The top losers of the BSE Sensex pack were Power Grid Corporation of India Ltd. (Rs. 196.35,-2.39%), Infosys Ltd. (Rs. 805.10,-1.94%), Tata Consultancy Services Ltd. (Rs. 2065.60,-1.74%), NTPC Ltd. (Rs. 119.90,-1.52%), Mahindra & Mahindra Ltd. (Rs. 699.65,-0.54%), among others.

Among the sectors, Auto index was at 17080.54 up by 1531.94 points or by 9.85%. Ashok Leyland Ltd. (Rs. 69.25,+18.68%), TVS Motor Company Ltd. (Rs. 424.75,+13.36%), Eicher Motors Ltd. (Rs. 17841.10,+13.21%), Hero MotoCorp Ltd. (Rs. 2849.40,+12.52%), MRF Ltd. (Rs. 64550.85,+11.10%),.

On the flip side, IT index was at 15579.31 down by -171.41 points or by -1.09%. Quick Heal Technologies Ltd. (Rs. 132.35,-6.47%), 8K Miles Software Services Ltd. (Rs. 59.25,-3.50%), eClerx Services Ltd. (Rs. 484.65,-3.30%), 3i Infotech Ltd. (Rs. 2.08,-3.26%), Infosys Ltd. (Rs. 805.10,-1.94%),.

The Market breadth, indicating the overall strength of the market, was weak. On BSE out of total shares traded 2967 , shares advanced were 1943 while 853 shares declined and 171 were unchanged.