At 1:20 pm, the rupee traded 34 paise - or 0.48 per cent - higher at 70.98 against the US currency.
- ."The news of government lowering corporate tax has rejoiced the market and gave rupee a big boost... The move was imperative as we are in a low demand cycle amid global idiosyncrasies," said Rahul Gupta, currency research head, Emkay Global Financial Services.
- The government slashed effective corporate tax to 25.2 per cent inclusive of all cess and surcharges for domestic companies
- Finance Minister Nirmala Sitharaman also said super-rich tax will not apply on capital gains arising from sale of any security including derivatives in hands of FPIs.
- Ms Sitharaman expressed confidence that the tax concessions will bring investments in Make in India, boost employment and economic activity, leading to more revenue.
- After the corporate tax rate cut accouncement, the S&P BSE Sensex index zoomed as much as 2,284.55 points to 38,378.02. The broader NSE Nifty benchmark index climbed to as much as 11,381.90, up 677.1 points from the previous close.
- While markets "have reacted positively to FM's announcement, there are concerns over deteriorating fiscal situation", cautioned Rushabh Maru, currency and commodity analyst with Anand Rathi Shares and Stock Brokers.
- The loss of revenue to the tune of Rs 1.450 lakh crore ($20.43 billion) through corporate tax cuts "will add to the fiscal mess", he added.
- The dollar index, which gauges the greenback's strength against a basket of six currencies, meanwhile, fell 0.03 per cent to 98.23.
- Brent crude futures, the global oil benchmark, rose 0.43 per cent to trade at $64.68 per barrel.
- Foreign institutional investors (FIIs) remained net sellers in the capital market, pulling out Rs 892.52 crore on Thursday, according to provisional exchange data.
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