Key Indian stock indices extended Friday’s rally on Monday, September 23, on news that the country’s government will drastically cut the corporate tax. Investors believe that this move will positively impact corporate earnings, thus boosting economic growth. To remind, the effective tax rate is to be slashed from 30% to 25%. Global news that China’s agricultural trade negotiators canceled their trip to the US did not affect local investor sentiment. Meanwhile, the external backdrop was negative as Asian equities had closed in the red, and European markets were also in decline. Recapping the benchmarks, the Nifty 50 surged 2.89% to 11,600.20, and the BSE Sensex advanced 2.83% to 39,090.03. By 10:52 GMT, the USD/INR currency pair eased 0.18% to 70.935, while EUR/INR traded down 0.45% to 77.9435. The 10-year Indian government bond yield narrowed to 6.735%. The top performers included consumer names. In particular, Britannia Industries and ITC soared 6.5% and 7.0%, respectively. Banking names were also well bid, with HDFC Bank and ICICI Bank gaining 4.8% and 6.9%, respectively. On the other hand, IT players were out of favor for the second straight session. As a result, Tata Consultancy Services and Infosys shed 2.4% and 5.0%. On the daily chart, the BSE Sensex has breached the upper end of a descending wedge with a large bullish candlestick pattern and is forming a gap. Since there are no signs of overbuying, the benchmark still holds upside potential in the short term.