Mumbai/New Delhi: The stock market has been in a festive mood ever since the announcement by Finance Minister Nirmala Sitharaman on Friday to cut corporate tax. In addition, signs of a cut in the GST rate and a softening in the US-China trade war became the icing on the cake. After the announcement of the Finance Minister, there has been a jump of about 3,000 points in the stock market in two days. The Sensex ended 1,075 points or 2.83% higher at 39,090.03 at the end of trading on Monday.
The NIFTY closed with a gain of 329 points at 11,603. An increase of 1,604 shares and a decline in 971 shares have been seen. The leading stocks of growth were BPCL, Bajaj Finance, Eicher Motors, IOC etc., while the major losers were Zee Entertainment, Infosys, Tata Motors, Power Grid etc.
Earlier on Friday, the Sensex had jumped 1,921 points and closed. On Monday morning, the Sensex opened at 39,312.94, an increase of nearly 1,300 points. The National Stock Exchange Nifty rose 276.60 points to 11,550.80. Foreign institutional investors and domestic investors fiercely shopped. By 12.45 PM, the Sensex rose by about 1415 points to reach 39432.
In the boom of two sessions, the market cap of NIFTY has increased by about 7 lakh crores. HDFC Group has won in terms of market cap.
Hotel companies’ stock up in the market
Due to the double bonanza of corporate tax cuts and the reduction in GST rates, the stocks of hotel companies saw a jump of 3 to 20% during the business. The highest jump of 19.50% was seen in Taj Hotels, 11% in Royal Orchard and Savera Industries and 10% in Jindal Hotels and Lemon Tree Hotels.
Significantly, as soon as Finance Minister Nirmala Sitharaman announced a cut in corporate tax, the domestic market swelled on Friday. The market saw the biggest one day boom after a decade. Domestic Institutional Investors (DII) invested Rs 3,000 crore during the day-long trading session on Friday.
According to experts, the impact of this announcement on the stock market will remain for the next few weeks. This week is a derivatives expiry on Thursday, September 26, so the market may remain volatile. Apart from this, all the news related to the US-China trade war will also be watched. The rupee business started in the morning with a softening of 10 paise, but by the end, it became a bit stronger.
Biggest gain in history
After the press conference of Nirmala Sitharaman, the stock market gained momentum, it set a new record. In fact, during the trading on Friday, at one time, the Sensex was seen to be trading with an increase of over 2250 points, while the Nifty also recorded an increase of more than 650 points. Earlier on May 18, 2009, the Sensex had gained 2,110 points. Then the market celebrated the then UPA government’s return to power once again.