As soon as Finance Minister Nirmala Sitharaman announced a cut in corporate tax, the domestic market was buzzing on Friday. The market saw the biggest one day boom after a decade. Domestic Institutional Investors (DII) invested Rs 3,000 crore during the day-long trading session on Friday.
Tremendous Sale Record on Friday
Foreign portfolio investors (FPIs) also showed a positive trend towards investment in the Indian market. Earlier, during the five seasons where he was doing Vikwali, on Friday he also started buying. FPI’s net investment, however, was just Rs 35.78 crore.
Encouragement of investors due to withdrawal of surcharge
According to data from the Bombay Stock Exchange, domestic institutional investors bought Rs 3,001.32 crore in the stock market. The imposition of surcharge and tax on the buyback of shares on the rich people in the general budget had broken the morale of investors and the FPI’s buying spurt. Foreign investors were withdrawing their money from the Indian market.
Corporate Tax cut gift
However, the withdrawal of surcharge imposed on FPIs as well as other recent steps of the government has brought huge relief to the investors. The Finance Minister on Friday announced a reduction in corporate tax to 22 per cent for those domestic companies which do not claim any exemption and incentives.