SpiceJet gives thumbs up to corporate tax rate cut
Finance Minister Nirmala Sitharaman has taken some welcome and bold steps to lift up the ailing economy; corporate tax rates have been slashed for domestic companies and new manufacturing firms.
New Delhi, Sep 20: Finance Minister Nirmala Sitharaman has taken some welcome and bold steps to lift up the ailing economy; corporate tax rates have been slashed for domestic companies and new manufacturing firms.
Almost immediately after the announcement, the markets registered a rise, with the Sensex surging over 1,300 points and Nifty climbing above the 10,900 mark after days of choppy trading.
SpiceJet chairman and managing director Ajay Singh welcomed the government's decision, asserting that it will help to boost investment and market demand.
"This is a huge step. It will improve sentiment and go a long way in reviving growth, investment and demand. This move, the latest in a series of steps taken by the government to spur growth, demonstrates the ability of the Finance Minister to come up with big solutions to big problems," he said in a statement.
"The Finance Minister has hit the ball out of the Arun Jaitley stadium," he added.
The benchmark indices logged the biggest ever gains in the history of trading in India as the government slashed the effective corporate tax rate to about 25 per cent from 30 per cent.
The sensex advanced by a massive 1921.15 points to 38,014.62 while the broader Nifty jumped to 11,275.45 after gaining 570.65 points or 5.33 per cent.
The biggest beneficiaries among the 30 Sensex stocks were HeroMoto Corp, Maruti Suzuki, IndusInd Bank, Bajaj Finance, State Bank of India and Bajaj Finance, which gained in the range of 9 to 12 per cent.
The badly beaten down auto stocks gained the most. Nifty auto jumped over 9.90 per cent while the Nifty banks index gained over 8 per cent.
News24 Bureau with Agency inputs
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