Indian share markets continued to surge on Monday for the second straight session since Finance Minister Nirmala Sitharaman announced a reduction in corporate tax rates for domestic companies in a bid to boost economic growth. Both the BSE Sensex and National Stock Exchange Nifty 50 were over 3% higher in early trade.

Sensex ended at 39,090.03 points, which is 1,075 points higher than the previous close. Nifty closed 326 points higher at 11,600.20. On Friday, both indices had gained 5% in their biggest single-day rally in a decade.

“It is important to see when FPIs [foreign portfolio investments] will resume their buying spree and how they are taking the tax rate cut,” Founder and Chief Executive Officer of SAMCO Securities Jimeet Modi told Mint.

The top gainers on Sensex were Bajaj Finace, Larsen & Toubro, Asian Paints, ITC Limited, and Axis Bank while Bharat Petroleum Corporation Limited, Bajaj Finance, Larsen & Toubro, Adani Ports, and Asian Paints led the gains in Nifty.

In Sensex, Infosys, Tata Motors, Power Grip Corporation of India Limited, National Thermal Power Corporation Limited, Tata Consultancy Services Limited led the losses. Arihant Found, Zee Entertainment, DPSC Limited, Euro India Fresh Foods Limited, and Reliance Capial were the top losers in Nifty.

The Indian rupee recovered on Monday, trading marginally higher at 70.91 paise against the dollar.

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The Political Fix: Are Sitharaman’s corporate tax cuts enough to stop India’s economic slide?

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