A morning walk down Dalal Street | Nifty can extend gains if it sustains above 50-DMA of 11,117

Episode 1706,   Sep 23, 2019, 01:30 AM

Sensex & Nifty posted their biggest single-day gains in 10 years. Nifty Bank & Midcap Index posted their biggest-ever one-day gains

Tax rate cut announcements lead to a gain of 1,921 points for Sensex, to reclaim 38000. The Nifty rose 569 and is back above 11,200 levels. The midcap index closed with gains of 904 points, and The Nifty Bank gained 2,224 points

Another big announcement was the rollback of enhanced surcharge announced in Budget on capital gains arising on sale of any securities including derivatives in the hands of foreign portfolio investors, and on sale of equity share in a company.

Companies which are paying more than 30 percent tax include names like ZEE Entertainment, HDFC Bank, Tata Steel, Bajaj Finance, Britannia Industries, Kotak Mahindra Bank, Hindalco Industries, Axis Bank, ITC, GAIL India, and JSW Steel.

D-Street would also react to GST council meeting.  The GST Council which concluded on Friday decided to lower GST rates on hotel tariff and outdoor catering, giving a boost to the hospitality sector.

The GST Council accepted the recommendation of the Fitment Committee for not lowering tax on auto sector. The GST Council did not take up rate cut proposal for auto sector and biscuits.