Market celebrates corporate tax cut with biggest rally in 10 years

Banking, auto shares gain the most; 5 stocks account for 68% of Sensex gains

Investors on Friday lapped up shares on optimism that the lower corporation tax rate would boost corporate earnings and the economy. The benchmark indices Sensex and Nifty rose more than 5 per cent each — their biggest single-day stride since May 2009 — even as bond yields soared on worries that the move would widen the fiscal deficit and increase inflationary pressure.

The Sensex rallied 1,922 points, or 5.3 per cent, to end at 38,015, while the Nifty surged 569 points, or 5.3 per cent, to close at 11,274.2 — recovering from a 3.4 per cent loss for the week,