A day after cooling down following a two-day euphoric rally, markets slumped in red on Wednesday. The BSE Sensex slumped over 450 points down and remained in red in the early trade. The Nifty also rallied around 11,445 points in the early trade.
On Tuesday, the 30-scrip Sensex of the BSE had opened at a high of 39,087.20 and touched a low of 38,795.73 after closing at 39,097.14.
Over Monday and Tuesday, both the domestic equity indices had traded in green, bouyed by Union Finance Minister Nirmala Sitharaman's announcement on reduction of corporate tax and MAT rates.
The government had on Friday announced that corporate tax rates will be slashed to 22% for domestic companies and 15% for new domestic manufacturing companies. The Government has brought in the Taxation Laws (Amendment) Ordinance 2019 to make certain amendments in the Income-tax Act 1961 and the Finance (No. 2) Act 2019.
The markets are expected to further stabilise after the Reserve Bank of India announces the rate-setting monetary policy next week.
A three-day meeting of the monetary policy panel is slated to begin on October 1, following which the announcement would be made on October 4.
Reports, however, suggest that the sentiments in the market are positive amid expectations of foreign investors making a comeback to India.