Loud cheer in markets for FM's booster, poised for biggest gain in a decade

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 5.2 per cent, poised for its best gain since May 2009, led by banks and automakers. The rupee climbed 0.6 per cent against the dollar. The yield on 10-year bonds surged 20 basis points, the most for the benchmark notes since Feb. 2017, to 6.85 per cent.

Tax on domestic companies will be slashed to 22 per cent from 30 per cent, Finance Minister Nirmala Sitharaman said Friday.

The effective new rate will be 25.2 per