Sensex zooms over 1,000 points after Sitharaman's tax cuts

The 30-share index zoomed 1,326.65 points, or 3.68 per cent, to 37,420.12 at 11:20am

sensex rep [File] Representational image | Reuters

Domestic equity benchmark BSE Sensex skyrocketed over 1,300 points in the 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 gains arising on sale of equity shares in 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, Sitharaman said listed companies that 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 1,326.65 points, or 3.68 per cent, to 37,420.12 at 11:20 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 Sitharaman's announcements.