Lessons for India from Donald Tump's tax cuts, market mood changes post-corporate tax slash; all this and more on Moneycontrol Pro

The sharp cut in corporate tax rates and the subsequent market reaction has led to technical, fundamental and data analysts changing their views.

Moneycontrol.com September 23, 2019 13:53:33 IST
Lessons for India from Donald Tump's tax cuts, market mood changes post-corporate tax slash; all this and more on Moneycontrol Pro
  • The cut in corporate tax and subsequent market reaction led to technical, fundamental and data analysts changing their views

  • Stock markets have reacted positively to the government's bold cut in corporate tax rate

  • After a sharp move in the Bank Nifty a consolidation is expected

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Lessons the Trump tax cuts have for India

The tax cuts have a set of cheerleaders who believe it will spur consumption and investment and growth but then there are also naysayers who say it will do nothing of the sort. While these positions have political underpinnings issues such as these are best evaluated by looking at the experience elsewhere. Read here to see how Donald Trump’s big tax cuts of 2017 helped (or did not) investment, growth and jobs and what lessons that may hold for India.

Lessons for India from Donald Tumps tax cuts market mood changes postcorporate tax slash all this and more on Moneycontrol Pro

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Corporate tax cut changes the market mood from fear to greed

The sharp cut in corporate tax rates and the subsequent market reaction has led to technical, fundamental and data analysts changing their views. The consensus view, of course, is that a temporary bottom has been made and that the bias is positive. Read here to know in more detail about how the view in different sections of the market has changed.

Corporate tax cuts: Game changer or short-term cheer?

Stock markets have reacted positively to the government’s bold cut in corporate tax rate, which has been done with an objective of boosting growth and encouraging private sector investments. Which companies are likely to benefit more and what are the long term benefits one can expect from this radical move by the government? Read our analyst’s take.

Why is this ethnic wear retailer worth your money?

This apparel retailer’s financials appear to be in good shape and is benefiting from the growing market opportunity in womenswear in India. The changes it is carrying out on the sourcing, manufacturing and store expansion front should help its business in the long run. Here’s our analyst’s take on this company and its valuations.

A small but efficient cement manufacturer that offers value at current levels

This company trades at a significant discount to its peers due to its small scale both in terms of size and market focus. But its integrated operations and prudent capital allocation have meant that the company has remained profitable across business cycles. The management has been focusing on cutting debt and improving cost efficiency. While the size is still a disadvantage, read here to see what our analyst liked about this stock.

Technical picks

Bank Nifty: After a sharp move in the Bank Nifty a consolidation is expected. A Double Diagonal Ratio spread trade in Bank Nifty. Read here to know how to trade this stock.

HDFC: HDFC shows a strong bullish morning star at the support zone. MACD histogram shows a bullish positive divergence. Read here on how to trade this stock.

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