Domestic equity benchmarks cheered the government's move to cut corporate tax rates for second session in a row and the S-P BSE Sensex surged 1,331.39 points and Nifty 50 index surpassed 11,650 mark outperforming the other Asian peers, a session after clocking the biggest single day gain in over a decade.
Buying was visible across the sectors barring IT and pharma shares.
Banking, auto and consumer goods shares were among the leading gainers in markets today.
Analysts said recent corporate tax reform measures announced by the government has led to the rally in markets and has boosted the investor sentiment.
Here are 10 things to know about the big gains in the markets today:The markets however gave up some of the gains in the first hour of trade.
At 9:52 am, the Sensex traded 718.83 points - or 1.89 per cent - higher at 38,733.45, while the Nifty was up 228.35 points - or 2.03 per cent - at 11,502.55.Top percentage gainers on the 50-scrip index at the time were GAIL, IndusInd Bank, Eicher Motors, Larsen - Toubro, Britannia and ITC, trading between 6.18 per cent and 6.64 per cent higher.HDFC Bank, ITC, L-T, HDFC and ICICI Bank were the top contributors to the surge in Sensex.
They collectively contributed over 600 points towards gain in the Sensex.Market breadth favoured gains, with an advance decline ratio of about 3:1.
On the BSE, 1,328 stocks traded higher while 492 moved lower.
On the NSE, 1,220 shares advanced while 429 declined.Analysts said the recent reforms by the government are a big positive for the markets."A mega bull market is starting now on the back of the reforms of the century for India I don't think we will be looking back anytime soon," AK Prabhakar, head of research at IDBI Capital, told TheIndianSubcontinent.The Nifty Fast-Moving Consumer Goods (FMCG) index jumped as much as 6.63 per cent, led by ITC and Britannia - which rose as much as 9.43 per cent and 20.12 per cent respectively in intraday trade."ITC has got a triple bonus, in the form of the ban on e-cigarettes, the cut in corporate taxes and the reduction in GST on hotel room tariffs," said Mr Prabhakar.Last Friday, the GST Council decided to more than double the tax on caffeinated beverages to 40 per cent while lowering the tax rate applicable to hotel room tariffs.
Earlier the same day, the government slashed corporate tax by almost 10 percentage points in a bid to revive economic growth.Finance Minister Nirmala Sitharaman said early on Monday that the government's move on corporate tax has sent a positive message "not just in India" but around the globe.Get Breaking news, live coverage, and Latest News from India and around the world on TheIndianSubcontinent.com.
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