Dream Rally in the Share market continued and picked up where it left on Friday as it added almost 1400 points before settling down in and around 1000 points.
This means in just two sessions, the stock market added 2900 points, something unheard of India’s share market history.
By 3 p.m of Monday, the Sensex was 1000 points above. At one point of time around noon, it was 1400 points above. It was over Friday’s mammoth 1,921-point rally.
The entire momentum was basically o the Government’s decision to cut corporate tax which was designed to woo manufacturers and revive private investment and lift growth from a six-year low.
The move will cost the government ₹1.45 lakh crore in the current fiscal year in terms of lost revenue.
Amongst all stocks banking, auto and FMCG stocks led the gains today. The Nifty Bank index rose over 6% to reclaim the 30,000 level. Among the banking stocks, IndusInd, ICICI Bank, Axis Bank, RBL Bank and HDFC Bank were up between 5% and 7%.
The Nifty FMCG index rose 6% with gains led by ITC (+8%), Britannia (+8%) and HUL (+6%). The banks and the FMCG companies are immediate clear winners as they pay the highest tax, HDFC Securities said in a note.