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Markets give thundering response to 'mother of all measures'
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SME Times News Bureau | 20 Sep, 2019
Indian markets responded most positively on Friday to the corporate tax
cut announced by government, more than it has done recently to measures
announced by Finance Minister Nirmala Sitharaman in the past few weeks
to revive the economy.
The benchmark Sensex gained over 1,921
points on Friday in what was the biggest ever single-day jump in over 10
years. The Nifty followed suit as the governemtn finally made up for a
depressing budget in July that cost millions of crucial FPI money in
outflows.
On the corporate tax cut announced, experts said that
market gains by the benchmark would certainly not be limited to 5-7 per
cent . According to them, the "animal spirits" could be back and
investors who had waited out the rough two months post-Budget would be
rewarded.
Amit Gupta of TradingBells said the Indian markets now
are in line with its Asian peers like China and Indonesia in terms of
corporate tax rates and are "surely going to catch the eyes of many FPIs
and FIIs, and we can see the inflows surging in the coming week".
Gupta
advised investors to focus on various corporates which are currently
paying over 25 per cent taxes such as State Bank of India, United
Spirits, Tata Steel, ONGC, Mahindra & Mahindra, among others.
"These
and many other scrips registered gains of 4 per cent to 10 per cent in
trade today (Friday) and could see further upside as the benefit of
lower taxation materialises in time to come, " he added.
Vinod
Nair, Head of Research, Geojit Financial Services said: "The new
corporate tax reforms by the government is music to the investors' ears
and will help to revive economic outlook in the coming quarters."
Nair
also said that "FIIs now have a good reason to come back to India and
this progressive step will stimulate consumption and ignite the capex
cycle. Additionally, companies will get more elbow room to pass on
benefits to customers, which in-turn will improve earnings visibility."
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Customs Exchange Rates |
Currency |
Import |
Export |
US Dollar
|
84.35
|
82.60 |
UK Pound
|
106.35
|
102.90 |
Euro
|
92.50
|
89.35 |
Japanese
Yen |
55.05 |
53.40 |
As on 12 Oct, 2024 |
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