SumanSpeaks: The Information Super Highway

Winning Strokes As expected the domestic benchmark indices corrected sharply today, amid broad based selling pressure. Banks, auto and metals tumbled. The S&P BSE Sensex, plummeted 503.62 points or 1.29% to settle at 38,593.52. The Nifty 50 index shed 148 points or 1.28% to close at 11,440.20. US political developments and tougher decibels  from the Washington and Beijing on trade deal also spoiled investors sentiment. The market breadth was quite weak. On the BSE, 762 shares rose and 1755 shares fell. A total of 128 shares remain unchanged. I had given a sell on Nifty Bank at around 29810 for a target of  29550. The Bank Nifty closed at 29,586.05 down 597.05 points. I had given a sell on the markets yesterday, and I believe we will slowly glide down towards 9200 as the P/E is quite high. Meanwhile, the initial irrational euphoria created by the media, post FM's cut of corporate tax has started to cow down. When the Private Consumer Index is at 4 ye...

Winning​ Strokes Domestic share markets extended previous session's rally triggered by the government's move to slash corporate tax rates for domestic companies.  The surprise decision by the government is seen boosting corporate earnings to some extent as the effective corporate tax rate after surcharge stills stands  at 25.17%.  Moreover, the move to reduce the tax to 15% for local companies incorporated after October 2019 is also being given too much importance by the media in the present context.  However, the government giving MAT relief for those opting to continue paying surcharge and cess at 22% is a good move. MAT has been reduced to 15% from 18.5% for companies who continue to avail exemption and incentives.  Though the Indian media is going ga ga on this step saying that it will bring significant positive implications for corporates' profitability, broader economy and market valuations, I feel with Peak Income Tax remaining ...