Sensex ends 1,921 points higher after fresh booster shot from government
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The domestic stock market, earlier in the day, registered their biggest single-day gain in more than a decade after the government announced deep cuts in corporate taxes to revive flagging growth in Asia's third-largest economy.
After a historic run on Friday, equity indices today afternoon ended at a record high with BSE Sensex closing at 38,014.62, 1,921.15 above its previous close of 36,093.47.
Both the broader NSE Nifty and the benchmark BSE Sensex closed 5.3 per cent higher, finishing the week with gains of more than 1.5 per cent.
The rupee, which rose as much as 0.9 per cent to 70.68 against the dollar after the announcement, pared some gains to trade at 71.05 by 10:15 GMT.
The domestic stock market, earlier in the day, registered their biggest single-day gain in more than a decade after the government announced deep cuts in corporate taxes to revive flagging growth in Asia's third-largest economy.
At 2:00 pm, the Sensex was at 38,313.65, higher by 2,220.18 points from the previous close of 36,093.47 points.
The NSE Nifty50 was trading at 11,379.60, higher by 674.80 points from the previous close.
The boost followed Finance Minister Nirmala Sitharam's announcement of cutting down the corporate tax rate to 25.17 per cent from 30 per cent.
"The reduction in corporate tax rate will "augur well for our economy," Reserve Bank of India chief Shaktikanta Das said.
Prime Minister Narendra Modi hailed the move and called it "historic".
The prime minister said that the move will attract private investment from all across the world and is a "win-win for 130 crore Indians".