Bull Runs Amuck On Dalal Street After GOI Announces Mega Relief To India’s Corporates

INDIA’S Share market on Friday zoomed to Rs 6.82 trillion in single day soon after Finance & Corporate Affairs Minister Nirmala Sitharam announced mega relief to the corporate world. In the equity markets Sensex skyrocketed 2,284 points in intra-day trade. The 30 share key BSE index saw a hike by 1,921.15 points or 5.32 per cent to close at 38,014.62. It advanced 2,284.55 points to 38,378.02, its biggest intra-day spike in over a decade. The bull market led the market capitalization of the BSE-listed companies to soar Rs 6, 82,938.6 crore to Rs 1,45, 37,378.01 crore in single day. The government has slashed the corporate tax rate for companies by almost 10 percentage points to 25.17 per cent and offered a lower rate to 17.01 per cent for new manufacturing firms to boost economic growth rate. “Today’s measures, without exaggeration, have revived the sagging economic situation and has reinfused the “Josh” among the corporate and capital market fraternity. Apart from the benchmark indices correcting, it was more to do with the sentiment which was hitting new lows day after day. That seems to be dealt with by daring to cut corporate tax, which clearly has a positive impact on the earnings,” The Business Standard quoted Devang Mehta, head (equity advisory) of Centrum Wealth Management, making the statement.