Sensex closes at 38,014.62 points after biggest spike in a decade; auto, bank stocks soar
New Delhi | Jagran Business Desk: The Sensex closed Friday's session with an unprecedented 5.32 percent advance as Finance Minister Nirmala Sitharaman made yet another big announcement to boost the economy.
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 percent higher at 38,014.62, while the broader Nifty jumped to 11,275.45 after gaining 570.65 points or 5.33 percent
The biggest beneficiaries among the 30 Sensex stocks were HeroMoto Corp, Maruti Suzuki, IndusInd Bank, Bajaj Finance, State Bank of India and Bajaj Finance, which gained in the range of 9 to 12 percent. On the other hand, PowerGrid, Infosys, TCS, NTPC, and Tech Mahindra ended in the red, losing up to 2.39 percent.
The badly beaten down auto stocks gained the most. Nifty auto jumped over 9.90 percent while the Nifty bank's index gained over 8 percent.
Bulls took over the market after the government slashed corporate tax rates for companies by almost 10 percentage points to 25.17 percent 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 companies liable for a securities transaction tax.
In another relief, the finance minister said listed companies which have announced a buyback of shares prior to July 5 will not be charged with the super-rich tax.
The Sensex and Nifty clocked their highest one-day gain in over a decade on the back of these announcements. The rupee too appreciated 29 paise to 71.04 against US dollar following the finance minister's announcements.
(With Agency Inputs)
Posted By: Talib Khan