Banking stocks continued their bull run for the second consecutive session today after FM Nirmala Sitharaman announced reduction in corporate tax rate to 22% per cent from the current 30%. While BSE banking index rose 1,445 points or 4.99% to 30,427 level, Bank Nifty climbed 959 points or 3.31% higher at 29,941 level today. Banking stocks have led the rally since Friday when the government cut corporate tax rate to 22%.
On Friday, bank Nifty opened at 26,821. Since then, the index has gained 3,764 points to intra day high of 30,585 points today. Similarly, BSE bankex opened at 30,264 on Friday. Since then, the index has added 4,108 points to hit an intra day high of 34,372 in today's trading session. IndusInd Bank (7.39%), ICICI Bank (6.75%), Axis Bank and HDFC Bank were the top gainers on BSE Bankex and Bank Nifty today.
Since Friday, IndusInd Bank has gained 17.97%, Axis Bank (12.73%) and HDFC Bank (15.64%) after the announcement of corporate tax rate cut. Kotak Securities said in a report automobiles, banks, consumer staples and global commodity sectors will see large earnings upgrade post the tax cut announcement.
Meanwhile, Sensex and Nifty rose 1411 points and 408 points to 39,425 and 11,682 levels in trade today, respectively.