Closing Bell: FM's tax relief kickstarts party on D-Street; Sensex up 1,921 pts, Nifty closes above 11,250

Technical View: Nifty forms Long White Day candle, 50 DMA crucial for further up move

VIX has not fallen much comparatively as Call Implied Volatility has spiked because of sudden market spike, and a drift below 14 levels could convince positive market momentum.... Read More

FIIs net bought Rs 35.78 crore worth of shares whileDIIs net bought Rs 3,001.32 crore in equities today, as per provisional data available on NSE.

Sure Govt will meet fiscal aim despite corporate tax cut; easy to achieve 8% GDP growth, says NITI Aayog Vice Chairman, Rajiv Kumar pic.twitter.com/tiD254cZ45

— CNBC-TV18 (@CNBCTV18Live) September 20, 2019

An Evening Walk Down D-St: Market posts biggest single-day gain in 10 years; investors richer by Rs 7 lakh crore

Market benchmarks Sensex and Nifty posted their biggest single-day gains in 10 years on September 20 after Finance Minister Nirmala Sitharaman announced a cut in corporate tax rates.... Read More

Moody's said Indian government's decision to cut corporate tax is credit positive and will boost companies' net income.

Total forex reserves in the week-ended September 13 fell by $649 million to $428.9 billion.

"The major stimulus given by the government has positive surprised the market. From the crucial support zone of 10,700-11,000, the Nifty has recovered sharply. This move has taken out the average short price of 11,200 of FIIs. Above this level, we expect FIIs to start closing their short positions, which can push the Nifty higher towards 11,500," Amit Gupta of ICICI direct said.

"Short positions in index heavyweights have been covered partially after the announcement. The same is going to get further enhanced if the Nifty holds above 11,200," he added.

The Indian rupee ended at 70.94 against the US dollar, up 37 paise compared to Thursday's close of 71.31 a dollar.

The stock markets responding to the relief measures announced today registered the highest one day gain in a decade. The Govt has chosen to give reliefs via corporate taxes (vs GST reliefs expected by different sectors). For listed corporates, the reliefs will mean ~10% increase in EPS for most high tax paying corporates leading to similar rise in indices, said Dhiraj Relli, MD & CEO, HDFC Securities.

These 20 Nifty 50 companies pay more than 30% tax rate; time to buy?

The government delivered just what the doctor ordered paving the way for higher growth in the economy and simultaneously giving investors the confidence that the bull cycle is still intact.... Read More

We expect Nifty to move towards 12,200 by December 2019, banking on the strength of blue-chip counters. Paradoxically, broader markets will remain in a consolidation phase given that consumption is in a cyclical downtrend, the economy has slowed and liquidity issues remain. The market is in a consolidation phase since early 2018 and the consolidation should last till mid-2020 before we embark on a sustainable rally.

Technical charts, weak GDP reading, damaged earnings profile and unfolding of incremental NPA stress corroborate our hypothesis, notwithstanding the one-time boost on account of tax cuts. On midcap stocks, though the bulk of the froth on midcaps has dissipated after the massive retracement in 2018, a sustainable resumption of rally in this counter will take another 12-15 months at least.

Bulls may take Nifty to 12,000 by Dec after surgical strike on bears

A fiscal stimulus of Rs 1.45 lakh crore has finally come to cheer the markets and the economy, and it is a big boost to honest tax paying companies who were paying full tax rate.... Read More