INSUBCONTINENT EXCLUSIVE:
The news comes after stocks came under heavy selling pressure from foreign investors.Stocks surged with the rupee while bonds slumped after
the government unexpectedly slashed the corporate tax rate to boost economic growth.The Sensex jumped 5.4 per cent, poised for its best gain
since May 2009, led by banks and automakers
companies will be slashed to 22 per cent from 30 per cent, Finance Minister Nirmala Sitharaman said Friday
The move follows announcements over the past month to boost consumer demand, bolster imports and attract investments into the country."The
measures aren't a patchwork but are real agents that will help revive growth," Rajiv Singh, Hyderabad-based chief executive officer at Karvy
"The fiscal deficit is a concern but at this time, growth should take priority."The news comes after stocks came under heavy selling
pressure from foreign investors
Overseas funds sold a net $4.9 billion of Indian equities this quarter through Wednesday, poised for the biggest quarterly outflow since at
that the government should use the fiscal space afforded to it last month by a more than $24 billion windfall from the Reserve Bank of India
The government's measures to reverse the slowdown have so far come in tranches and were seen as inadequate.All but one of the 19 sector
sub-indexes compiled by BSE gained, led by a gauge of auto stocks
HDFC Bank Ltd and Reliance Industries Ltd
provided the biggest boost to the Sensex.The S-P BSE Auto Index advanced 7.7 per cent, its biggest jump in a decade, led by India's
largest passenger car maker Maruti Suzuki India
Prabhakar, head of research at IDBI Capital Market Services:"High tax-paying companies like Maruti Suzuki, HDFC Bank are just zooming
I have not seen this kind of rally in recent years, besides an election day
It will arrest the downtrend in sentiment, and auto companies are among the highest tax payers, so this will help some of the sectors that
have been worst hit recently."Vaibhav Sanghavi, co-chief executive officer at Avendus Capital PBC Markets Alternate Strategies LLP in
Mumbai:"Investor sentiment will turn positive as the tax cut will help corporate profitability, increase business confidence and thus throws
open a prospect of better valuations of firms."Mustafa Nadeem, CEO, Epic Research"Today's reaction is totally out of surprise and it will
be acting as strong support for the coming weeks and months
10700 - 10800 is now set to be a strong base for Nifty and we may see continuity in positive momentum on any dips from here on."Get Breaking
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