Nifty closes lower but broader markets up, economic concerns remain
Fiscal deficit and economic growth are twin concerns facing the economy. Experts have been recommending loosening up fiscal targets and focusing on economic growth. Moreover, there seem to be early signs of the economy recovering.
Larger companies continue to grow at rates higher than GDP, stay invested despite the news
Our analysis suggests that many of the larger companies, leading the Nifty, continue to grow at rates higher than nominal GDP growth and are trading at valuations that are reasonable. Moreover, as and when the economy recovers, growth rates will be stronger than long term expected growth rates as companies start re-stocking their inventories.
Markets likely discounting economic weakness, maintain positive note
Despite the weak economy, the stock markets have been holding up well on the back of the reduced corporate income tax rates leading to higher earnings growth. Moreover, this step is expected to trigger an investment cycle.
Markets rebound on FM announcement, economy yet to follow
Stock markets in India rebounded strong, post the announcement of reduced tax rates for Indian companies. The Nifty was up sharply, making up for the losses over the past few months.
How does the corporate tax rate change benefit equity investors?
In one stroke, the FM reduced the corporate rates from 34.9% to 25.2%. Let’s find out how it benefits shareholders and thus you, as an investor.
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