Financial Minister announces corporate tax cut, sensex immediately jumps 1000 points

Mumbai: Domestic equity benchmark BSE Sensex skyrocketed over 1300 points in morning session on Friday after Finance Minister Nirmala Sitharaman announced a slew of measures to revive the ailing economy.

In a major booster to the market, the government has decided to not levy the enhanced surcharge introduced in the Budget on capital gain arising on sale of equity shares in a companies liable for securities transaction tax.

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

In another relief, the minister said listed companies which have announced 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 per cent 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.