Motilal Oswal - MOSL: INDIA STRATEGY-Big Fiscal Bazooka-sharp reduction in corporate tax rates-Nifty EPS to see 8% upward revision

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Motilal Oswal

Gautam Duggad

EUR 350.00 For Business Accounts Only

MOSL: INDIA STRATEGY-Big Fiscal Bazooka-sharp reduction in corporate tax rates-Nifty EPS to see 8% upward revision

INDIA STRATEGY: Big Fiscal Bazooka; sharp reduction in corporate tax rates; Nifty EPS to see 8% upward revision; big boost to drive new investments

Government unveils fiscal stimulus in a historic decision to slash corporate tax rates

** After a series of baby steps to boost growth over the past month, the Indian government took a giant leap on 20th Sep'19 by unveiling a big-bang fiscal stimulus in the form of a sharp reduction in the corporate tax rate from 30% to 22% and a fillip for investments in manufacturing.

** At USD20b impact, the cut in tax rates provides a sizable boost to the animal spirits of corporate India with potential to drive investment, sentiment and in turn consumption. Last time, the corporate tax rates were cut by such a magnitude was in the famous 'Dream Budget' of 1997.

** With this step, the government has done its part for the time being, in our view. Now the ball is in the court of Corporates as to how they utilize this stimulus to drive investments and consumption.

23/09/2019 8 EN

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Motilal Oswal

Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.

Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.

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Analysts

Gautam Duggad

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MOSL: INDIA STRATEGY-Big Fiscal Bazooka-sharp reduction in corporate tax rates-Nifty EPS to see 8% upward revision

MOSL : HOME FIRST FINANCE COMPANY: Earnings in-line with sustained improvement in asset quality

MOSL : SHOPPERS STOP: Ticking the right boxes

MOSL : ERIS LIFESCIENCES: Enhanced efforts toward product launch-related activities

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