New Delhi: After Union Minister Nirmala Sitharaman announced slashing corporate tax for the domestic companies, it had major impact on the stock market. Closing on a positive note in the week, the Sensex ended 1,921.15 points higher at 38,014.62. This is the highest closing level recorded since July 22. The Nifty also climbed 569.40 points to settle at 11,274.20. It is also the highest since July 26.
At the closing time at NSE, all sectoral indices except for Nifty IT were in the green with Nifty auto up by 9.9 per cent, private bank by 8.2 per cent, financial service by 7.2 per cent and metal by 5.6 per cent.
Auto stocks increased with Eicher Motors gaining by 13.3 per cent to Rs 17,860 per share, Hero MotoCorp by 12.3 per cent, Maruti Suzuki by 10.5 per cent and Mahindra & Mahindra by 9.1 per cent.
According to day-end report, private lender IndusInd Bank closed 10.9 per cent higher, Bajaj Finance by 10.6 per cent and State Bank of India by 10.1 per cent, while ICICI Bank gained by 2.4 per cent. The other gainers were UltraTech Cement, Britannia and Titan which witnessed gains of over 9 per cent each.
However, IT stocks were not so positive with Tata Consultancy Services, Tech Mahindra and Infosys being seen in the red. The developments are seen after the Narendra Modi-led Central government has brough out a number of measures to revive the ailing economy.
The gross domestic product (GDP) grew by 5 per cent in April to June quarter compared to 8 per cent in the same quarter of 2018-19 because of the slowdown in manufacturing, muted auto sales, and construction activity.
Earlier in the day, the stock market crossed 12,000 points after Sitharaman announced measures to slash corporate tax for the domestic companies to 22 per cent without exemptions.
(With inputs from ANI)