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Oct 22, 2019, 01.23 AM IST
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Economic Times | 20 Sep, 2019 | 10.45PM IST

Traders’ Diary: Don’t get carried away by rally

Sensex closed unprecedented 5.32% higher as FM made yet another big ticket announcement.

!1 New UpdateClick here for latest updates
08:26 PM

Nifty needs to sustain above its 50-day moving average (11,117), which can also confirm the strength on the index. Owing to the huge 5 per cent upmove, there could be some profit booking and traders are advised to wait for some correction, before initiating long positions

- Mazhar Mohammad,

08:25 PM

Nifty50 has managed to reclaim its 50-DEMA and formed a short term bottom out process of daily and weekly scales with broad-based buying across the sector. It has to continue to hold above 11,180, to extend its move towards 11,380 then 11,500, while on the downside supports are seen at 11,111 then 11,050 levels

- Chandan Taparia of Motilal Oswal Securities.

08:25 PM

Time and again we have been mentioning about 11,300-11,500 zone to be tested on the upside. We continue with the bullish view and the upper end of the range is likely to get tested. Expect broader markets to witness sustainable upmoves. 11,150 zone is likely to act as near term support

- Manav Chopra, Head Research - Equity, Indiabulls Ventures

08:23 PM

The announcements came just in time as the market was reeling under tremendous pressure, citing weak domestic sentiment and not so encouraging global markets. On the benchmark front, Nifty should hold above 11,250 to carry this momentum else profit-taking may resume. We suggest being selective at current levels as participation would restrict largely to the quality names

- Ajit Mishra Vice President, Research, Religare Broking

08:22 PM

The move would help in improving the investment climate of India. The total revenue foregone is expected to be Rs 1.45 lakh crore. Considering the present slowdown chances are high that the government might miss the fiscal deficit target for FY20. However, in the long run, this move will benefit the fiscal

- Deepthi Mathew, Economist at Geojit Financial Services

08:21 PM

These steps will promote growth and is likely to revive investment and consumption cycle. This would also lead to rerating of earnings estimates for Indian companies. Markets have given a huge thumbs up to these measures with both Nifty & Sensex posting highest single day gain in last 10 years. The measures are negative for the bond markets in the short term because of the impending fiscal slippage. In the medium term - growth pick up, buoyancy in tax collections, fiscal road map, disinvestments, etc. would provide direction to bond markets

- Soumya Rajan, MD & CEO, Waterfield Advisors

08:20 PM

The 11,100-11,150 zone, which posed a strong resistance earlier, will now act as a support for the index on the downside. Nifty50 to trade with a positive bias in the intermediate term

- Mohit Khanchandani, Nirmal Bang Institutional Equities

06:28 PM

Tax cut is a huge step in boosting the overall profitability of corporate India. This step along with some of the other measures announced including that the enhanced tax surcharge introduced in July 2019 shall not apply to Capital Gains on sale of equity share which is subject to STT (Securities Transactions Tax) would go a big way in restoring confidence in the Indian equity markets. One the biggest problems ailing the investment rate was low corporate savings and, to the extent, this tax cut boosts corporate savings, this is positive structurally for the improvement in private sector investment rate

- Shibani Kurian, Senior Vice President and Head of Equity Research, Kotak Mahindra AMC

05:39 PM

Some sectors which will see an immediate impact of these announcements will be Financials, Consumer and Auto where most of the companies fall under the 35% plus tax rate. This is releasing additional equity into the system. Banks to that extent have got extra equity and capital adequacy, which can have a huge positive impact on the economy when leveraged and lent to the system

- Vikas Khemani, Founder, Carnelian

04:07 PM

Today’s measures, without exaggeration, has revived the sagging economic situation & has reinfused the “Josh” amongst corporate & capital market fraternity. Apart from the benchmark indices correcting, it was more to do with the sentiment which was hitting new lows day after day. That seems to be dealt with by daring to cut corporate tax, which clearly has a positive impact on the earnings. Markets are a slave of earnings. It also paves the way for India attracting its share of foreign flows, which is overdue. Hopefully, With positive trigger for higher earnings & change in prevailing pessimistic mood, it is imperative for investors to keep the faith & keep investing in companies with sound fundamentals & robust earnings growth, rather than getting carried away & buying duds

- Devang Mehta, Head – Equity Advisory, Centrum Wealth Management

03:58 PM

The new corporate tax reforms by the government is music to the investor’s ears and will help to revive economic outlook in the coming quarters. FIIs now have a good reason to come back to India and this progressive step will stimulate consumption & ignite capex cycle. Additionally, companies will get more elbow room to pass on benefits to customers, which in-turn will improve earnings visibility.

- Vinod Nair, Head of Research, Geojit Financial Services

03:56 PM

The announcement made by the Finance Minister today is commendable. With this the Government has signalled that it is listening to the Industry and is willing to embrace it as a partner for progress of the Country. We are certain that this Big Bang reform will kickstart the economy. Surplus funds available to companies will be invested in capex and talent. The NBFC sector will save between Rs. 250 - 300 crore that can potentially be redeployed as loans. In a climate of global slowdown, this reform will make India an attractive destination for FIIs and long term investors. The announcement has brought parity to India’s corporate tax rate compared to that of advanced markets thus making it very competitive

- Ajay Piramal

03:36 PM

CLOSING BELL: Sensex skyrockets 1,921 pts to log biggest gain in 10 years on tax cut euphoria; Nifty zips past 11,250

CLOSING BELL: Sensex skyrockets 1,921 pts to log biggest gain in 10 years on tax cut euphoria; Nifty zips past 11,250
03:28 PM

Sensex posts biggest ever point wise rise in absolute terms

03:16 PM

Top 10 NSE losers

Price as on 20 Sep, 2019 03:16 PM, Click on company names for their live prices.
03:10 PM

Top 10 NSE gainers in today's session

Price as on 20 Sep, 2019 03:10 PM, Click on company names for their live prices.
01:33 PM

Shyam Sekhar proclaims the demise of shortsellers

01:29 PM

"This restart marks the beginning of the Great Indian Dream"

01:23 PM

How do you score FM's corporate tax cut announcements from an economic revival perspective?

01:19 PM

RBI Governor backs FM's move to slash corporate tax rates

RBI Governor backs FM's move to slash corporate tax rates
01:11 PM

Maruti sees biggest rally in 7 years on tax booster

Maruti Suzuki share prices surged 10 per cent in intraday trade on Friday, the biggest rally in seven years, amid short covering in the beaten-down counter ahead of the GST Council meeting, which is to take up a proposal for tax cuts.
01:04 PM

The tax rationalization announcement by the FM today should help to revive the economy over the next few quarters. Acuité believes it will improve the climate for fresh private sector investments in the manufacturing sector that the economy has been long deprived of. Further, the removal of surcharge on capital gains will act to boost the sentiment of the equity markets and the FPIs.

- Suman Chowdhury, President - Ratings, Acuité Ratings & Research

01:01 PM

FM delivers the right recipe to cheer Corporate India and leverage the ongoing trade war to our advantage. Corporate Tax Cuts announced today are just what markets need to overcome the slowdown and bring back animal spirits to Corporate India. The bulls are back and the sheer velocity of the rally signifies the extent of pessimism that has been prevailing in our markets.

- S Ranganathan, Head of Research, LKP Securities

12:59 PM

The reduction in the corporate tax rate is a welcome move and makes India attractive for new investments. Also, the changes to CSR contributions and the relief on buy-back tax, will address past concerns and also help in channeling funds towards R&D initiatives

- Frank D'Souza, Partner and Leader Corporate and International Tax, PwC

12:58 PM

With these measures, Indian corporate tax rates have come down to amongst the lowest in the world especially for the new manufacturing companies. These decisions will be celebrated as historic and will go a long way in improving ‘Ease of Doing Business In India’ even further. We, at BSE, welcome these moves and thank the Hon’ble PM and Hon’ble FM for promoting industrialization in India with these measures. These announcements will further boost the investor confidence and start the investment cycle.

- Ashishkumar Chauhan, MD & CEO, BSE

12:44 PM

Friday blockbuster: Sensex surges over 1,900 pts on FM's corporate tax bonzana

12:41 PM

Among the sectors, I expect Banking, FMCG, consumer durables, and Auto companies will be major beneficiaries. The Manufacturing sector will become attractive with a 15% Corporate Tax rate for new manufacturing companies in India especially in the times when the world is in the phase of trade wars.

- Rajiv Singh, CEO, Karvy Stock Broking

12:19 PM

These are much more than what any of the most optimistic person would have expected as far as India is concerned. I think it is a big-big step towards reviving manufacturing particularly because of the additional benefits for manufacturing and overall sentiment.

- Sunil Singhania, Founder, Abakkus Asset Manager

12:18 PM

The FM has done what it takes to trigger animal spirits in the industry. The unprecedented 4.5 per cent rise that the markets have seen intraday today is the highest in 5 years. This is a result of a massive short covering and augurs well

- VK Sharma, Head - PCG & Capital Market Strategy HDFC securities

12:04 PM

Sameer Arora says tax announcements bigger than 20 budgets!

12:04 PM

The measures announced by the FM this morning can be described as a 'New Deal' for the Indian economy. Reduction in corporate tax rate to 22 percent (25.17% effective rate) and for new manufacturing companies to 15 percent and reduction on MAT are big boost to investment. The psychological stimulus from this 'New Deal' will be higher than the fiscal stimulus. Animal spirits will respond positively. The message from Dalal street is a clear signal. Bold move indeed!

- VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services

12:03 PM

It’s a very essential measure. It will revive animal spirits in the economy. Also, the MAT announcement is very positive FIIs (foreign institutional investors) will look at India closely as tax rates here are getting very comparable to global standards.

- Deven Choksey, Group Managing Director at KR Choksey Investment Managers

12:02 PM

The Government’s announcements today is definitely a positive move. It is also a prudent move to reduce the corporate tax rates because (1) it increases the retained earnings of the companies and forms the investible surplus for future, (2) moves India to parity with its regional peers thereby removing one of the issues related to manufacturing and exports, (3) maintains macro prudence by continuing to favour investment cycle rather than consumption cycle. On the flip side it will negatively impact the bond market as the revenue forgone due to the tax rate reduction will make it difficult to stick to the gfd/gdp budgeted target.

- Suvodeep Rakshit, Senior Economist, Kotak Institutional Equities

12:01 PM

There cannot be better day for India than what has happened today. It is amazingly bold move by Nirmala Sitharaman and the Modi government. The tax level has been brought to global level and on the top of it, incentives have been given for the new industry. This will give I think boost to the sentiment.

- Anil Agarwal, Chairman, Vedanta

11:49 AM

It’s a big bazooka and a very positive step. It has the capability of reviving the economy

- Vaibhav Sanghavi, co-CEO, Avendus Capital Public Markets Alternative Strategies

11:46 AM

This is yet another surgical strike on bears and negative sentiments in the economy which will create an environment of surplus in the hands of corporates for making further investments and ease their liquidity concerns. The reduction to 22% in corporate taxes will result in massive release of Rs 1,45,000 Crs immediately in the economy which will boost sentiments and bring in real surplus to the corporates. Companies in Consumer Finance, banks both Pvt and Public sector, Hotels all pay upwards of 32% tax will have maximum benefits, however rest of the sectors will have nominal positive impact. This is a path breaking move delivered by Modi 2.0 government in the interest of economy at the cost government exchequer in times of crises which will go down well in the history.

- Jimeet Modi, Founder & CEO, SAMCO Securities & StockNote

11:37 AM

India’s top 50 companies which are part of the benchmark NSE Nifty index paid a total tax of Rs 1.65 lakh crore for the year ended March 2019. On the other hand, their net sales and net profit stood at Rs 50.55 lakh crore and Rs 3.60 lakh crore, respectively, according to Ace Equity.

11:35 AM

In a major boost to revive flagging animal spirits & position India as one of the most attractive business destinations, government of India has announced a slew of measures that would act as a force multiplier for the flagging economic engine. By slashing corporate tax rate to 25% from 35% (22% from 30% without exemptions) for existing domestic companies & an extremely attractive rate of 15% for new companies setting up manufacturing operations after 1st October 2019 and commencing operations before 2023, government has rolled out a red carpet that would ensure hundreds of billions of dollars of FDI & FII flows over the medium term. It is in a true sense an early arrival of festival of lights (Diwali) and banishment of long period of darkness & gloom bothering the Indian economy

- Ajay Bodke, CEO & PMS, Prabhudas Lilladher

11:29 AM

Eicher Motors up 13 per cent, its biggest one-day gain in 20 years

11:26 AM

Auto stocks lead gainers on Sensex, NTPC alone in the red

Auto stocks lead gainers on Sensex, NTPC alone in the red
11:24 AM

Rupee is up 45 paise or 0.62%

11:24 AM

Nifty Bank sees its biggest one-day gain; 4.7% up

11:23 AM

Government has taken a bold and proactive step to bring much needed tax reforms, which will boost investment and also aid to private cycle capex. The lowering of corporate tax rate will also widen the tax net and will gradually bring more revenues to government. Overall, the move will make Indian companies globally competitive, a welcome step to arrest slowdown and lift up the market sentiments. The move will also give a boost to Nifty EPS.

- Sanjeev Hota, Head of Research, Sharekhan

11:20 AM

Market Now

All the players in the Sensex pack were trading in the green with Tata Steel gaining the most 5.19 per cent. It was followed by Maruti Suzuki (up 5 per cent), HDFC Bank (up 4.86 per cent), YES Bank (up 4.62 per cent) and Reliance Industries (up 3.50 per cent). Among the sectoral indices on BSE, the Auto index rallied the most 3.69 per cent. Bankex, Capital Goods, Metal, Consumer Durables and Oil & Gas were up between 1.50 per cent and 3.70 per cent. ​​
11:05 AM

Sensex jumps 850 points, Nifty tops 10,950; all sectors on BSE in the green

11:04 AM

Total revenue loss for reduction on tax wil be 1.45 lakh cr/yr: Finance Minister

10:53 AM

Sensex surges over 650 points as FM proposes to slash corporate tax rate

Sensex surges over 650 points as FM proposes to slash corporate tax rate
10:46 AM

FM proposes to slash corporate tax rate for domestic companies

- Nirmala Sitharaman, Finance Minister

10:29 AM

GST panel likely to recommend tax cuts on 20-25 products

India’s goods and services tax panel is likely to recommend tax cuts on 20-25 products on Friday but will avoid lowering rates for items that will significantly dent revenue collections, two government sources said. The panel, comprising state finance ministers and the federal finance minister as the chair, will shortly meet to decide on reducing tax rates to boost growth that has fallen to a six-year low. (Source: Reuters)
10:23 AM

YES Bank jumps 6% as Rana Kapoor sells 2.3% stake in lender

Shares of YES Bank jumped as much as 6.5 per cent on BSE in Friday's session after Morgan Credits (MCPL), part of the promoter group of YES Bank, sold 2.3 per cent stake in the lender on Thursday.

The ownership of the promoter group in the lender has gone down to 15.7 per cent compared with 18 per cent earlier. Rana Kapoor family's stake in YES Bank now stands at 7.4 per cent.

Morgan Credits said the proceeds will be used to prepay a portion of the outstanding non-convertible debentures (NCDs) of MCPL subscribed by various schemes of Reliance Nippon Life Asset Management Company (RNAM).
10:10 AM

Ignore all the noise around GDP, GST, RBI, SBI, IBC, ICE, EV, NBFC and instead intensely focus on what really matters: Sanjay Bakshi

10:06 AM

Zee Entertainment drops 10%, hits 5-year low

NEW DELHI: Shares of Zee Entertainment, a part of the Subhash Chandra-led Essel Group, continued their losing streak on Friday and tanked nearly 10 per cent intraday to hit a five-year low of Rs 277 on BSE.

The scrip came under pressure after ET reported that the debt woes of Essel Group promoters may worsen as mutual funds squabble among themselves on whether to give more time to Chandra’s private firms to repay debt.

With 11 days to go for Essel promoters to redeem the pledge on shares of Zee Entertainment by repaying loans to mutual funds and non-banking finance companies, some mutual funds are against granting more time. Shares of Zee Entertainment have been pledged by the promoters to raise money for the group’s infrastructure projects.
09:46 AM

LIVE |Ramesh Damani says $5t economy dream achievable

09:35 AM

YES Bank, ZEEL, DHFL among most active stocks on NSE

Price as on 20 Sep, 2019 09:35 AM, Click on company names for their live prices.
09:29 AM

Today's calls by ISec

Today's calls by ISec
09:19 AM

OPENING BELL: Sensex gains 50 points, Nifty flat; ZEEL plunges 9%, YES Bank rises 2%

OPENING BELL: Sensex gains 50 points, Nifty flat; ZEEL plunges 9%, YES Bank rises 2%
09:17 AM

Podcast: Let's talk business & markets

09:02 AM

Pre-open session: Sensex gains 140 pts, Nifty above 10,750

Sensex gains 140 pts, Nifty above 10,750; rupee trades at 71.17 against dollar
08:15 AM

Singapore trading sets stage for positive start

Nifty futures on the Singapore Exchange were trading 19 points, or 0.18 per cent, higher at 10,724, indicating a positive start for Dalal Street.
08:15 AM

Tech view: Nifty forms small bullish candle

Nifty50 on Thursday looked all set to take out its swing low 10,637, but a late recovery made sure the index closed above the 10,700 level. The headline index hit a low of 10,670.25, but analysts feel it could be a matter of time before a new swing low is made below 10,637 level. The upside for the index looks capped at 10,800 level.
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