Share Market highlights: Sensex sees biggest ever one-day gain, ends 1,921 points up

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Updated:Sep 20, 2019 3:43:15 pm

Share market highlights: The headline indices Sensex and Nifty registered their biggest single day gain ever, after FM's mega tax cuts.

FM Nirmala Sitharaman Announces package of 70 thousand crore for export and housing sectorThe Sensex ended 1,921 points higher at to 38,014 while the Nifty closed near the 11,300-mark.

Share market highlights: The headline indices Sensex and Nifty registered their biggest single day gain ever, after FM’s mega tax cuts. The Sensex ended 1,921 points higher at to 38,014 while the Nifty closed near the 11,300-mark, posting their biggest one-day gain ever. Heromotocorp, Maruti Suzuki, IndusInd Bank, Bajaj Finance were among the biggest gainers, gaining up to 12.50%. Finance Minister Nirmala Sitharman has cut corporate tax to 22% (effective maximum tax rate 25.17%) for Financial Year 2019-20 subject to condition that such companies will not avail any exemption/incentive. Further, Minimum Alternative Tax (MAT) has been abolished for domestic firms availing the lower new rate of tax. Asian share prices inched higher on Friday as economic stimulus around the world eased fears of economic deceleration while crude oil prices climbed on concerns that last weekend’s attacks on Saudi Arabia’s oil facilities still pose supply risks, Reuters reported. We bring to you highlights.

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Highlights

    15:43 (IST)20 Sep 2019
    BSE live: Sensex sees biggest ever one-day gain, ends 1,921 points up

    The headline indices Sensex and Nifty registered their biggest single day gain ever, after FM's mega tax cuts. The Sensex ended 1,921 points higher at to 38,014 while the Nifty closed near the 11,300-mark, posting their biggest one-day gain ever. Heromotocorp, Maruti Suzuki, IndusInd Bank, Bajaj Finance were among the biggest gainers, gaining up to 12.50%. A look at LIVE Sensex heatmap.

    15:06 (IST)20 Sep 2019
    Nifty may hit 12,000 by December-19

    "This is the historic reform announced by our FM and it is a step in the right direction. The corporate tax cut will expand the bottom-line of the companies and the profits will be utilized to start the CAPEX cycle. We further expect RBI to slash at-least 50 bps rate cut till March 20 thereby infusing growth in the system. We believe GDP to bottom-out in Q1 and can clock in a 6.5% GDP growth rate in FY20.  With all the reforms galore taken to date by our FM in the right direction, we expect Nifty to touch 12000 levels by Dec 19," Forum Parekh, Fundamental Analyst, Indiabulls Ventures said. 

     
    14:53 (IST)20 Sep 2019
    Corporate tax cut could propel Nifty to 11,600 without any other factor

    "The effective tax rate of Nifty companies on an aggregate basis was 26% which will now come down to 25.17%. There are only 20 Nifty companies which paid more than 30% effective tax rate and accounted for 43% of overall net profit in FY19. Any company paying 33% tax rate will see its earning go up by 12%. Overall, we can see Nifty earnings going up by ~5-6% in FY20 as the effective tax rate was already lower at 26%. Add the sentiment booster angle and the way this will be taken positively by FIIs and local investors we can expect the Nifty to rally by 9-10% from today’s low of ~10,700. Hence, 11,500-11,600 is very much possible on the Nifty without considering any other factor," Rusmik Oza, Head of Fundamental Research, Kotak Securities said.

    14:47 (IST)20 Sep 2019
    Early Diwali for Sensex, Nifty; earnings growth to revive

    'Equity markets would rejoice as the multi-year cycle of earnings downgrade will finally come to an end. A significant valuation re-rating will follow as the market would start building in a virtuous cycle of upgrade in earnings trajectory over the medium-term due to both tax savings & boost in revenues due to perk-up in aggregate demand. The engine of domestic consumption will fire first followed by the investment engine on the back of corporates regaining their mojo. Incentives announced last week for export sector will also support the third engine of growth i.e. exports. It is in a true sense an early arrival of festival of lights (Diwali) and banishment of long period of darkness & gloom bothering the Indian economy,' Ajay Bodke (CEO PMS Prabhudas Lilladher) said. 

    14:40 (IST)20 Sep 2019
    Modi says corporate tax cut will create more jobs; calls it historic move

    Prime Minister Narendra Modi has called the step to cut the corporate tax as historic. Narendra Modi said that this move will give a great stimulus to the Make in India campaign and will attract private investment from across the globe. He added that the tax cut will improve the competitiveness of the private sector and will create more jobs. Referring to the announcements made by Finance Minister Nirmala Sithraman, Narendra Modi said that the announcements in the last few weeks clearly demonstrate that the government is leaving no stone unturned to make India a better place to do business, improve opportunities for all sections of society and increase prosperity to make India a $5 trillion economy. 

    14:35 (IST)20 Sep 2019
    FM's mega measures will boost FPI flows in India

    "FM has announced a fiscal stimulus of Rs 1.45 tn (0.7% of GDP) in the form of corporate tax rate cut to 22% from 30%. A similar step of corporate tax rate cut by the Trump administration in 2017 resulted in a robust US economy post that announcement. Other steps announced by the finance minister include a tax rate of 15% for new manufacturing companies commencing post Oct’19, removal of surcharge on capital gains on sale of equity shares and unit repealed including derivatives and MAT rate reduced from 18.5% to 15%. The above measures will act as a catalyst for supporting the slowing investment rate, boost corporate earnings, improve aggregate demand as corporates pass on some of the benefits to consumers and attract FPI flows into India," Vijay Chandok, MD & CEO, ICICI Securities said. 

    14:29 (IST)20 Sep 2019
    FM big tax move should boost 20 Nifty stocks

    "Our first-cut analysis of the Nifty-50 stocks suggests about 20 Nifty stocks should see in excess of 10% earnings upsides due to this announcement, while the Nifty as a whole should see ~8% EPS benefit for FY21. Our analysis of BSE500 companies, whose tax contributions account for ~one third of all corporate tax receipts of the govt, should see a 12% drop in their tax bill on their FY19 numbers. Thus, the government math does not seem too off. This move along with excess transfers from the RBI might have an impact of 30-40bps on fiscal deficit. This gap of ~Rs0.9trn may need to be offset by either curbing expenditure, or disinvestments in excess of target of Rs1.05trn," Emkay said in a note.

    14:21 (IST)20 Sep 2019
    Sensex extends gains; up 2,100 points as stock markets cheer mega announcements

    The headline indices Sensex and Nifty extended gains on Friday afternoon following Nirmala Sitharaman's mega booster for economy. The Sensex is up about 2,200 points to 38,293, while the Nifty is trading near the 11,400-mark. A look at LIVE Sensex heatmap.

    14:11 (IST)20 Sep 2019
    Nifty Bank index sees biggest jump in over 5 years; jumps 10%

    The Nifty Bank index registered its biggest gain in over 5 years, gainig more than 10%. Private sector lenders including RBL Bank, Federal Bank, IndusInd Bank surged up to 19%. A look at Nifty Bank index chart.

    13:58 (IST)20 Sep 2019
    CLSA cheers FM's mega tax cuts: Sees Nifty EPS upgrade by 6-7%

    After FM's mega corporate tax cuts, global firm CLSA said that EPS upgrade for Nifty will be 6-7% due to these measures. Morgan Stanley says that the new announcement by the Finance Minister Nirmala Sithraman is good for forward private sector investment rate. Also, the earnings estimate for Sensex is now revised upwards. It added that the sensex earnings growth estimate is revised upward to 25% from 13%.

    13:49 (IST)20 Sep 2019
    Corporate tax cut to give ‘necessary fillip’ to economy, says Piyush Goyal

    Commerce and industry minister Piyush Goyal on Friday said the announcement of the corporate tax rate cut for companies by almost 10 percentage points to 25.17 per cent will give necessary fillip to the economy. “Finance Minister’s announcement on slashing corporate tax will give necessary fillip to the economy which we’ve been hoping for. We have had a series of measures and today’s measures are the largest,” Goyal said at an event here. Read the full story here 

    13:34 (IST)20 Sep 2019
    Morgan Stanley calls the new announcement good for market growth.

    Morgan Stanley says that the new announcement by the Finance Minister Nirmala Sithraman is good for forward private sector investment rate. Also, the earnings estimate for sensex is now revised upwards. It added that the sensex earnings growth estimate is revised upward to 25% from 13%.

    13:07 (IST)20 Sep 2019
    BSE live: Sensex gains most in 10 years, up 1,800 points after Finance Minister's tax cuts

    The headline indices Sensex and Nifty registered their biggest single day gain in over 10 years, surging 1800 points after FM's tax cuts. Maruti Suzuki, HDFC Bank, L&T were among the biggest gainers, jumping more than 8% each.  Finance Minister Nirmala Sitharman has announced major concession for companies which will be incorporated after October 1, 2019. A look at LIVE Sensex heatmap.

    12:53 (IST)20 Sep 2019
    RBI expects growth to pick up from Q2 on government spending

    Reserve Bank governor Shaktikanta Das Friday exuded confidence that second-quarter GDP numbers will be better than the previous one as the government has started spending again. Attributing the 5 percent GDP growth in Q1, which is a six-year low and is even lower than that of Pakistans 5.4 percent, to very low government spending, Das said with the centre opening its coffers again growth should pick up going forward.

    Full story

    12:46 (IST)20 Sep 2019
    Sensex, Nifty will rejoice following FM's key announcements, these sectors get a boost

    'Equity markets would rejoice as the multi-year cycle of earnings downgrade will finally come to an end. A significant valuation re-rating will follow as the market would start building in a virtuous cycle of upgrade in earnings trajectory over the medium-term due to both tax savings & boost in revenues due to perk-up in aggregate demand. The engine of domestic consumption will fire first followed by the investment engine on the back of corporates regaining their mojo. Incentives announced last week for export sector will also support the third engine of growth i.e. exports,' Ajay Bodke, CEO PMS Prabhudas Lilladher said. 

    12:43 (IST)20 Sep 2019
    FM's make in India boost will bring in billions of dollars in FDI, says Ajay Bodke of Prabhudas Lilladher

    "In a major boost to revive flagging animal spirits & position India as one of the most attractive business destinations, government of India has announced a slew of measures that would act as a force multiplier for the flagging economic engine. By slashing corporate tax rate to 25% from 35 % (22% from 30% without exemptions) for existing domestic companies & an extremely attractive rate of 15% for new companies setting up manufacturing operations after 1st October 2019 and commencing operations before 2023, government has rolled out a red carpet that would ensure hundreds of billions of dollars of FDI & FII flows over the medium term," Ajay Bodke, CEO PMS Prabhudas Lilladher said. 

    12:38 (IST)20 Sep 2019
    FM Sitharaman’s tax cuts bring in early Diwali; India’s tax rates now on par with those globally

    By slashing corporate tax rates, by an average of 10 percentage points, finance minister Nirmala Sitharaman has taken Indian corporate tax rates to south-east Asian levels! The move should stimulate investment levels since one of the big hurdles to investment has been higher tax rates in India, apart from issues like labour laws and unfriendly policies in various sectors like telecom and mining. The FM will lose Rs 145,000 crore on a business-as-usual basis, that is on the assumption that fresh investments don’t start immediately; that is a reasonable assumption since investments will take 2-3 years to fructify. While that will raise the deficit, already under stress since the tax targets were too ambitious to begin with, it doesn’t really matter; the sensex rose 1500 points within a short while of the announcement.

    Full story

    12:35 (IST)20 Sep 2019
    Expert take: Corporate tax cut will revive economy

    "Reduction of corporate tax has been on the agenda for a while, and this should help in boosting the capex cycle, also it gives companies space to cut prices to boost demand. The corporate tax cut should go a long way in a revival of the economy. The government estimates the fiscal impact to be about 0.7% of GDP, and bond yields have gone up as a result. The measures will benefit the economy with a lag and the boost to the economy as a result of the tax cuts should help offset much of the lower tax rates later in the year and next fiscal year," Rajiv Singh, CEO, Karvy Stock Broking said. 

    12:23 (IST)20 Sep 2019
    Expert take: Corporate tax cut to boost markets

    "The Government’s announcements today is definitely a positive move. It is also a prudent move to reduce the corporate tax rates because (1) it increases the retained earnings of the companies and forms the investible surplus for future, (2) moves India to parity with its regional peers thereby removing one of the issues related to manufacturing and exports, (3) maintains macro prudence by continuing to favour investment cycle rather than consumption cycle. On the flip side it will negatively impact the bond market as the revenue forgone due to the tax rate reduction will make it difficult to stick to the gfd/gdp budgeted target," Suvodeep Rakshit, Senior Economist, Kotak Institutional Equities said. 

    12:16 (IST)20 Sep 2019
    Nirmala Sitharaman’s 4 economy boosters: From slashing corporate tax rate to relief for FPIs; key measures

    In a major boost for the economy, Finance Minister Nirmala Sitharaman on Friday announced a slew of fresh measures to prop up slowing economic growth and boost consumption. It comes ahead of the goods and services tax (GST) to be held today in Goa. The government made various announcements ranging from slashing corporate tax rate to providing capital gains relief to foreign portfolio investors (FPIs).  Here are the 4 key announcements made by finance minister today.

    Full story

    12:01 (IST)20 Sep 2019
    Biggest single day gain for Sensex and Nifty in 10 years

    The headline indices Sensex and Nifty extended gains on Friday morning after FM's mega tax rate cuts. The Sensex registered its biggest single day gain in over 10 years, surging 1800 points. Maruti Suzuki, HDFC Bank, L&T were among the biggest gainers, jumping more than 8% each. A look at live Sensex heatmap.

    11:51 (IST)20 Sep 2019
    33 per cent in 6 months! While stocks, mutual funds bleed, investors strike it rich with REIT

    For investors looking to invest in physical real estate, Real Estate Investment Trust (REIT) offers an alternative avenue to reap the potential of property market. Locking in funds in residential or commercial real estate comes with its own share of concerns. From running around to find the right location to paying different fees, from charges to register the property to finding the right tenant, different issues crop up including the maintenance of property. REIT, on the other hand, works somewhat similar to a mutual fund. In REIT investing, units/shares are allotted and its price variation determines the returns for the investor. 

    Full story

    11:31 (IST)20 Sep 2019
    Nirmala Sitharaman’s Make in India boost; new companies to get taxed at 15%

    Finance Minister Nirmala Sitharman has announced major concession for companies which will be incorporated after October 1, 2019. These companies will be taxed at a rate of 15%, while the effective tax on them will be 17.01 per cent. Finance Minister Nirmala Sitharman said that in order to provide a boost to the government’s flagship Make in India program, the government has decided to impose the new tax regime. The finance minister also said that the effective tax rate for these firms will be 17.01% inclusive of surcharge and cess. The new tax rate will be only applicable to companies who do not take any other tax holidays.

    Full story

    11:27 (IST)20 Sep 2019
    Big relief for foreign investors, listed firms; govt withdraws enhanced surcharge, buyback tax

    Finance Minister Nirmala Sitharaman announced big relief for capital gains by foreign portfolio investors and buyback tax for listed companies. The Finance Minister said that the enhanced surcharge will not be applicable to capital gains arising on sale of any security, including derivatives in the hands of foreign portfolio investors. She added that in order to provide relief to listed companies which have already made a public announcement of buyback before 5 July 2019, tax on buyback of shares shall not be charged. Nirmala Sitharaman also said that any domestic company has an option to pay income tax at 22 per cent, subject to the condition that they will not avail any exemption and incentive.

    Full story

    11:20 (IST)20 Sep 2019
    BSE live: Sensex cheers FM's mega tax cuts, soars 1300 pts

    The headline indices Sensex and Nifty extended gains on Friday morning after FM's mega announcements. The Sensex is up about 1,266 points to 37,260 while the Nifty is trading above the 10,950-mark. Maruti Suzuki, HDFC Bank, Tata Steel shares are among the biggest gainers, jumping up to 10%. Finance Minister Nirmala Sitharman has announced major concession for companies which will be incorporated after October 1, 2019. A look at LIVE Sensex heatmap.

    11:10 (IST)20 Sep 2019
    Nirmala Sitharaman's Make in India boost; new companies to get taxed at 15%

    Finance Minister Nirmala Sitharman has announced major concession for companies which will be incorporated after October 1, 2019. These companies will be taxed at a rate of 15%, while the effective tax on them will be 17.01 per cent. Finance Minister Nirmala Sitharman said that in order to provide a boost to the government's flagship Make in India program, the government has decided to impose the new tax regime.

    Full Story

    11:08 (IST)20 Sep 2019
    Sensex surges after FM's mega tax announcements

    The stock market cheered the mega tax announcements made by FM Nirmala Sitharaman. The Sensex is up 900 points to above 37,000.

    11:02 (IST)20 Sep 2019
    FM withdraws enhanced surcharge on FPIs

    "Enhanced surchage to not not apply yo capital gains by FPIs," says FM Sitharaman.

    11:01 (IST)20 Sep 2019
    Buyback tax, CSR funds can be spent on incubators

    "Buyback tax for listed companies announcing buybacks pre-July 5 is exempted. CSR funds can be spent on incubators funded by PSU's of central ond state governments," FM said.

    10:56 (IST)20 Sep 2019
    Firms enjoying tax holidays also eligible

    "Companies enjoying tax holidays can avail concession rates after exemption period," FM says. 

    10:53 (IST)20 Sep 2019
    FM slashes tax rates for new domestic firms

    Local companies incorporated aftter October 2019 to pay tax at 15%. There is no minimum alternate tax for these firms, this is being done to give a boost to Make in India.

    10:51 (IST)20 Sep 2019
    Boost to Modi's Make in India: Tax rates slashed

    Boost to make in India. FM proposes tax rate of just 15% for new companies, Effective tax rate for these firms at 17.01% inclusive of surcharge and cess. This is done to give boost to manufactirung in India. No minimum alternate tax for these too.  

    10:48 (IST)20 Sep 2019
    Corporate tax slashed for domestic firms

    "The effective tax rate for companies 25.17% inclusive of surcharges and cess. No minimum alternate tax," FM says.

    10:46 (IST)20 Sep 2019
    FM announces corporate tax rate cut

    "We today propose to slash corporate tax rate for domestic firms. These ammendmants are being brought about to the income tax act 1961," FM Nirmala Sitharaman said in Goa today.

    10:43 (IST)20 Sep 2019
    Nirmala Sitharaman reviews liquidity situation: PSU banks to hold loan melas for NBFCs, retail borrowers

    Finance Minister Nirmala Sitharaman on Thursday said that the banks have started moving in the direction of reforms announced by the government. Among the several decisions taken in the meeting with PSU bank heads today, Nirmala Sitharmaan said that the government has planned to hold ‘loan melas’ to encourage lending amid the ongoing slowdown. The liquidity situation has been also been reviewed with the banks and some of them have even identified NBFCs they can lend to now, she said.

    Full story

    10:43 (IST)20 Sep 2019
    Nirmala Sitharaman reviews liquidity situation: PSU banks to hold loan melas for NBFCs, retail borrowers

    Finance Minister Nirmala Sitharaman on Thursday said that the banks have started moving in the direction of reforms announced by the government. Among the several decisions taken in the meeting with PSU bank heads today, Nirmala Sitharmaan said that the government has planned to hold ‘loan melas’ to encourage lending amid the ongoing slowdown. The liquidity situation has been also been reviewed with the banks and some of them have even identified NBFCs they can lend to now, she said.

    Full story

    10:39 (IST)20 Sep 2019
    Govt investing LIC money in loss-making firms, shattering people’s trust, says Priyanka Gandhi

    Congress leader Priyanka Gandhi Vadra on Friday alleged that the Modi government was “shattering” people’s trust in LIC by investing the state-run insurance firm’s money in loss-making companies. Taking to Twitter, she also tagged a media report which claimed that LIC has suffered losses of Rs 57,000 crore in just two and a half months. “LIC is another name for trust in India. Common people invest their hard earned money in LIC for future security, but the BJP government is investing LIC money in loss-making companies, shattering their trust,” Priyanka Gandhi said in a tweet in Hindi.

    Full story

    10:30 (IST)20 Sep 2019
    Free money for everyone can’t be economy’s panacea; why Universal Basic Income won’t solve problems

    The world economy is turning toward a depressingly familiar cycle of lower rates, renewed quantitative easing and more fiscal stimulus. The return to a persistent semi-slump in advanced economies is likely to increase interest in universal basic income, or UBI – an idea supported by Democratic presidential contender Andrew Yang and business figures from Facebook Inc.’s Mark Zuckerberg to Tesla Inc.’s Elon Musk. If adopted, this radical prescription is unlikely to prove a magic bullet.

    Full story

    10:20 (IST)20 Sep 2019
    Steps so far: Bank merger, e-cigarettes ban

    The government had announced the merger of 10 PSU banks into four major lenders that led to the number of PSBs coming down to 12 from 24 banks, Sitharaman had said at a press conference on August 30. The minister last week had launched more than Rs 70,000 crore of measures for exporters and the real estate sector that including around Rs 30,000 crore worth new spending towards launching a stressed asset fund, PTI had reported. The government on Wednesday had cleared an Ordinance to stop e-cigarettes sale and manufacturing and proposed jail up to one year or fine up to Rs 1 lakh or both for first-time offenders, and jail of up to three years and fine up to Rs 5 lakh for repeat offenders.

     
     
    10:11 (IST)20 Sep 2019
    Update: FM's press conference at 10. 30 am

    Finance Minister Nirmala Sitharaman will address a Press Conference today at 10.30 am in Goa, ahead of the 37th GST Council Meet today. The meet comes amid the ongoing economic slowdown, even as the government has already announced a slew of measures to tackle headwinds in the MSMEs and banking sector. Finance Minister Nirmala Sitharaman will address a Press Conference today in Goa, ahead of the 37th GST Council Meet today. The meet comes amid the ongoing economic slowdown, even as the government has already announced a slew of measures to tackle headwinds in the MSMEs and banking sector.