6:00 PM Mumbai, 8:30 AM New York – Stocks in India surged after the government proposed to lower individual and corporate taxes to the lowest on record. The simplified and lowered tax regime with vigorous enforcement is expected to widen the taxpayer base from the current 2.5% of population.

Stocks surged after Finance Minister Mukherjee proposed to lower corporate and individual tax rates. In the revised and simplified tax regime corporate taxes will be lowered to 25%. Individual will pay taxes on earnings above 10 lakh rupees at a rate of 10%.

The government hopes that simplified taxes and tighter tax enforcement will improve revenues collection and lower its dependence only 2.5% of the population.

The Sensex index in India increased 498.33 or 3.32% to 15,518.49 and CNX Nifty index rose 147.50 or 3.31% to 4,605. Among the Sensex 30 stocks all stocks closed higher.

On BSE trading, 2,211 stocks advanced, 515 declined and 61 were unchanged.

Gainers & Losers

Adlabs Films Limited gained 3.6% or Rs.11.60 to Rs.325.50 after the board approves Rs.600 crore fund raising.

Ambuja Cements Limited rose 3.0% or Rs.3.10 to Rs.103.60.

Compact Disc India Limited the animation company jumped 13.6% or Rs.7.95 to Rs.66.10.

Everonn Systems India Limited surged 5.7% or Rs.20.10 to Rs.367.00 after a Rs. 918.7 million order from government of Uttar Pradesh.

Hindustan Petroleum Corporation Limited an integrated oil refining and marketing company fell 1.1% or Rs.1.45 to Rs.352.65.

ICICI Bank Limited rose 5.0% to Rs.746.20 after its American depository receipt or ADR increased 3.78% overnight to $30.44 on the New York Stock Exchange.

Jammu and Kashmir Bank Limited increased 5.7% or Rs.27.00 to Rs.495.20.

Maruti Suzuki India Ltd increased 6.4% to Rs 1,373.10 after the talks of lower individual tax rate lifted stocks in the auto sector.

Mastek Limited gained 3.4% to Rs.268.00 and IT solutions provider launched a new platform to enable new insurance carrier to launch business in 90 days.

National Aluminium Company jumped to Rs.320.30 and separately the company strengthened security at mine after Maoist terrorist threat.

Orchid Chemicals & Pharmaceuticals Ltd jumped 3.9% or Rs.3.95 to Rs.105.25 after it received the final approval from the US Food and Drug Administration for its drug Sumatriptan Succinate tablets.

Pantaloon Retail (India) Limited slumped 1.3% Rs.302.45.

Pratibha Industries Limited jumped 8.6% or Rs.14.05 to $175.75 after the company received an order worth Rs 523 crore for construction of ESIC Medical College at Patna from National Buildings Construction Corporation.

Prime Securities Limited rose 4.6% or Rs.1.35 to Rs.30.55 after the company cancelled 6 lakh warrants at exercise price of Rs 275.

PSL Limited surged 10.4% or Rs.13.40 to Rs.141.25 after the pipe manufacturer receive an order worth Rs 500 crore from Gail (India) Ltd.