Mumbai: Investor wealth soared for the second consecutive session on Monday, rising by Rs 10.35 lakh crore in two sessions, as market sentiment remained euphoric after a host of measures were announced to boost slowing economic growth. The 30-share BSE Sensex soared 1,075.41 points, or 2.83%, to close at 39,090.03 on Monday. During the day, it jumped 1,426.5 points to 39,441.12. Led by the gains in equity market, the market capitalisation (m-cap) of BSE-listed firms rose by Rs 10,35,213.03 crore to Rs 1,48,89,652.44 crore in two trading sessions. The m-cap of BSE-listed companies was Rs 1,38,54,439.41 crore on Thursday. Markets are on a rise since Finance Minister Nirmala Sitharaman delivered a surprise cut in corporate tax rates. The announcements were made during trading hours on Friday which sent the markets soaring. On Friday, it logged its biggest single-day jump in over a decade by surging 1,921.15 points, or 5.32%.
"The Indian benchmark indices started the expiry week on a strong note buoyed by improved domestic sentiments post a slew of measures by the government last week. The markets registered second straight session of healthy gains, despite unsupportive global cues," Ajit Mishra, vice president, research, Religare Broking Ltd said. The government slashed the base corporate tax for existing companies to 22% from 30%, and for new manufacturing firms, incorporated after October 1, 2019, to 15% from 25%.
From the 30-share components, 16 scrips closed the day with gains, led by Bajaj Finance, L&T, Asian Paints, ITC, Axis Bank, Kotak Bank, ICICI Bank, IndusInd Bank, HDFC twins, Maruti and SBI, rallying up to 8.70%. In the broader market, the BSE midcap and smallcap indices rallied up to 3.08%. On the BSE, 1,638 scrips advanced, while 972 declined and 184 remained unchanged.Shares of hotel companies zoomed up to 20% on Monday after the GST Council reduced tax rate for hotel room tariffs.
The scrip of Taj GVK Hotels & Resorts jumped 19.98% and Royal Orchid Hotels advanced 16.30% on the BSE. Among others, Indian Hotels Company zoomed 8.20%, ITC rose 6.95% and Hotel Leela Venture advanced 3.59%. Post market hours on Friday, the GST Council reduced tax rate on hotel room tariffs, a move aimed at giving a boost to the hospitality sector.
The GST (goods and services tax) rate on hotel rooms with tariffs of up to Rs 7,500 per night has been cut to 12% from the existing 18%. Similarly, the tax on rooms with tariff above Rs 7,500 has been slashed to 18% from the existing 28%. There will be no GST on rooms with tariffs below Rs 1,000 per night.
