Economics
India Stocks Soar by the Most in a Decade on Corporate Tax Cuts
- Sovereign bonds dropped the most since January on fiscal risks
- Tax cuts may boost economic growth that slowed to six-year low
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Indian stocks surged with the rupee while bonds slumped after the government unexpectedly slashed the corporate tax rate to boost economic growth.
The Sensex jumped 5.3%, its biggest gain since May 2009, led by banks and automakers. The rupee climbed 0.5% against the dollar. The yield on 10-year bonds surged 15 basis points, the most for the benchmark notes since January.