Stock prices of nearly half of the BSE500 firms back to pre-tax cut levels

Concerns about financial sector health weigh on investors' minds

The euphoria created by the surprise reduction in the corporate tax rate is waning as concerns about the health of the country’s financial sector roils the stock market. Stock prices of nearly half of the BSE500 companies are back to pre-tax cut levels. 

The turmoil in the financial sector has erased all the gains made by several companies after September 19, when Finance Minister Nirmala Sitharaman cut the corporate tax rate to 22 per cent (excluding surcharges) from 30 per cent earlier. Following the announcement, the Sensex had surged over 8 per cent in two days as analysts raised earnings