Stocks

Investor wealth zooms Rs 10.35 lakh cr in two days of market rally

PTI New Delhi | Updated on September 23, 2019 Published on September 23, 2019

Investor wealth soared for the second consecutive session on Monday, rising by Rs 10.35 lakh crore in two sessions, as market sentiment remained euphoric after a host of measures were announced to boost slowing economic growth.

The 30-share BSE Sensex soared 1,075.41 points, or 2.83 per cent, to close at 39,090.03 on Monday. During the day, it jumped 1,426.5 points to 39,441.12.

Also read: Corporate tax cut propels Sensex, Nifty to jump 5 per cent

Led by the gains in equity market, the market capitalisation (m-cap) of BSE-listed firms rose by Rs 10,35,213.03 crore to Rs 1,48,89,652.44 crore in two trading sessions. The m-cap of BSE-listed companies was Rs 1,38,54,439.41 crore on Thursday.

Surprise cut

Markets are on a rise since Finance Minister Nirmala Sitharaman delivered a surprise cut in corporate tax rates. The government slashed the base corporate tax for existing companies to 22 per cent from 30 per cent, and for new manufacturing firms, incorporated after October 1, 2019, to 15 per cent from 25 per cent.

Also read: Finance Minister unleashes corporate ‘animal spirits’

The announcements, which were made during trading hours on Friday, sent the markets soaring. On Friday, it logged its biggest single-day jump in over a decade by surging 1,921.15 points, or 5.32 per cent.

“The Indian benchmark indices started the expiry week on a strong note buoyed by improved domestic sentiments post a slew of measures by the government last week. The markets registered second straight session of healthy gains, despite unsupportive global cues,” Ajit Mishra, Vice President, Research, Religare Broking Ltd, said.

Big gains

From the 30-share components, 16 scrips closed the day with gains, led by Bajaj Finance, L&T, Asian Paints, ITC, Axis Bank, Kotak Bank, ICICI Bank, IndusInd Bank, HDFC twins, Maruti and SBI, rallying up to 8.70 per cent. In the broader market, the BSE midcap and smallcap indices rallied up to 3.08 per cent.

On the BSE, 1,638 scrips advanced, while 972 declined and 184 remained unchanged.

Published on September 23, 2019
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