Indian shares soared for the second day running on Monday, with benchmark indexes Sensex and Nifty logging their best ever two-day gains, after the government slashed the base corporate tax rate to 22 percent from 30 percent and the GST Council reduced taxes on a number of items and services to boost consumption.
Investors also turned optimistic that the Reserve Bank of India (RBI) will cut interest rates in its bimonthly monetary policy due in the first week of October.
The benchmark S&P BSE Sensex surged as much as 1,075.41 points, or 2.83 percent, to 39,090.03 while the broader NSE Nifty index ended the session up 329.20 points, or 2.92 percent, at 11,603.40. The Sensex jumped over 3,300 points in two days, while the Nifty climbed over 1,000 points.
IOC, Eicher Motors, Bajaj Finance, Larsen & Toubro and BPCL jumped 8-14 percent in the Nifty pack while Dr Reddy's Laboratories, Tata Motors, Power Grid Corp, Infosys and Zee Entertainment Enterprises tumbled 4-8 percent.
Globally, Asian stocks ended mixed as Fed officials remained split on the need for further easing and U.S. President Donald Trump said he didn't need a trade deal with China before the 2020 election, fueling pessimism about the prospect of a trade truce between the world's two largest economies.
European markets fell in early trade after business activity readings from across the euro zone suggested growth had ground to a halt.
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