Sensex soars over 1,300 pts to reclaim 39,000 level; Nifty above 11,500
Mumbai: Extending its euphoria over government's economy-boosting measures, equity benchmark BSE Sensex soared over 1,300 points to reclaim the 39,000 mark in early session on Monday, driven by gains in index heavyweights HDFC Bank, ITC, L&T and ICICI Bank.
After hitting a high of 39,346.01 points, the 30-share index was trading 1,031.58 points, or 2.71 per cent, higher at 39,046.20 at 0930 hours, while the broader Nifty rallied 263.75 points, or 2.23 per cent, to 11,537.95.
In the previous session on Friday, the BSE barometer logged its biggest single-day jump in over a decade by surging 1,921.15 points or 5.32 per cent to 38,014.62, while the NSE Nifty zoomed 569.40 points or 5.32 per cent to end at 11,274.20.
Bulls took over Dalal Street after Finance Minister Nirmala Sitharaman delivered a surprise cut in corporate tax rates.
Announcing the latest set of measures to jump-start flagging growth, the Finance Minister 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.
Market continued to rally on Monday as sentiment investor remained euphoric in opening session, traders said.
According to Shibani Kurian, Senior Vice President and Head of Equity Research, Kotak Mahindra AMC, corporate tax rate cut is a huge step in boosting the overall profitability of corporate India.
"This step along with some of the other measures announced including that the enhanced tax surcharge introduced in July 2019 shall not apply to capital gains on sale of equity share which is subject to securities transactions tax would go a big way in restoring confidence in the Indian equity markets," she said.
One the biggest problems ailing the investment rate was low corporate savings and, to the extent, this tax cut boosts corporate savings, this is positive structurally for the improvement in private sector investment rate, she added.
Top gainers in the Sensex pack in early trade included ITC, Asian Paints, IndusInd Bank, L&T, HUL, Maruti, ONGC, HDFC Bank, Bajaj Finance, Axis Bank and ICICI Bank, rallying up to 8 per cent.
On the other hand, Infosys, TCS, TechM, HCL Tech, NTPC and PowerGrid tanked up to 8 per cent.
Elsewhere in Asia, bourses in Shanghai, Hong Kong, Tokyo and Seoul were trading on a negative note in their respective late morning sessions.
The rupee, meanwhile, traded flat against its previous close at 70.94 in early session. Global oil benchmark Brent crude rose 1.06 per cent to 64.96 per barrel (intra-day).
On Friday, foreign portfolio investor purchased shares worth a net of Rs 35.78 crore, while domestic institutional investors bought equities worth Rs 3,001.32 crore, provisional data showed.
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Two held in UP's Bijnor for contact with Pakistan linked Dubai handler
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Bijnor (PTI): Two men were arrested in this Uttar Pradesh district on Friday for allegedly being in touch with a Pakistan-linked handler based in Dubai, police said.
Circle Officer, Najibabad, Anjani Kumar Chaturvedi said Uvaid Malik and Jalal Haider were arrested following inputs on their alleged links with Aqib, a resident of Meerut currently staying in Dubai.
According to police, Aqib had earlier come into the spotlight after a video surfaced on Instagram purportedly showing him displaying an AK-47 rifle and explosives.
During interrogation, the arrested men allegedly told police that Aqib used to incite youngsters against Hindus and encourage anti-national activities, the officer said, adding that detailed questioning of the accused is underway.
On April 6, Superintendent of Police (SP) Abhishek Jha said the video first surfaced in November last year. Aqib, a native of Sathla village in the Mawana area of Meerut, was allegedly seen in the video brandishing weapons.
Following the viral clip, a case was registered at the Nangal police station by sub-inspector Vinod Kumar. However, the then station house officer and investigating officer Satyendra Singh had recorded Aqib's statement and filed a final report, stating that the weapons seen in the video were toys, effectively giving him a clean chit.
Police said fresh developments have now revealed Aqib's suspicious links and the probe has been handed over to the Anti-Terrorist Squad (ATS).
The SP said action has been taken against the officials concerned, with the then SHO and investigating officer suspended and Circle Officer Nitesh Pratap Singh removed from his post.
