Nifty Bank clocks highest single-day gain ever

Nifty Bank index, on Friday recorded its biggest single-day gain ever as it surged by 8.31 per cent or 2223.9 points to a level of 28,981.

The sharp spike in the index comes after the announcement of Finance Minister Nirmala Sitharaman to cut corporate tax rate on domestic companies. This move will lower the higher tax rate of 34 per cent to 25.17 per cent on companies including surcharge and cess and to 22 per cent excluding surcharges and cess. Reduced tax rate will help in increasing the fundamental earnings. The finance minister mentioned that this tax rate will be applicable from April 1, of the current fiscal year.

Post the announcement, shares of private banks scaled higher. HDFC Bank jumped by 9.06 per cent to Rs. 1200.1 per share whereas ICICI Bank increased by 7.97 per cent to close at Rs. 417.35 per share. RBL Bank closed at Rs. 382.25, up by 15.05 per cent and YES Bank closed 2 per cent higher than the previous close on BSE.

Amid negative market sentiments, the latest announcement by finance minister was instrumental in turning the market green with many investors earning huge profit on Friday session.