Sensex Jumped to 1.921 Points In Response To Government’s Tax Cuts
Friday 20, September was a big day for the Dalal Street investors that experienced the biggest jump of 1,921 points on the last trading day. The Sensex closed at 38,014 points making the investors richer by 7.1 lakh crore. The jump soared the BSE’s market capitalization to 145 lakh crores. Also, the market cap has crossed $2-trillion mark.
What measures did the government announce?
Union Finance Minister Nirmala Sitharaman announced tax cuts for corporate companies in the radical changes in taxation rules. And the ripples of the tax cuts were felt across the industry. According to industry experts, the changes could boost profit of corporate companies by about 6-7% on an average. Also, some rule changes could attract foreign capital leading to employment opportunities for unemployed youth.
Here’s how the industry reacted to the tax cuts
DSP Investment Managers – the move would enhance corporate profitability and make Indian companies more competitive to global businesses.
Broking houses – NSE’s top 500 companies would see a boost in profit and India shares would attract foreign funds.
Yes Securities – combined net profit of NSE 500 companies will rise by about 12% up from 5% earlier.
Credit Suisse – consumer companies would be the biggest gainer from the tax cuts.
K R Choksey Securities – banks will game with HDFC, ICICI and IndusInd Bank would lead.
Biggest gainer of the day
HDFC emerged as the biggest gainer with 9.1% jump. The second biggest gainers are Reliance Industries and ICICI Bank. Among the laggards were Infosys, TCS and BSE.