Corporate tax rate cut impact: Move will help draw attention of foreign investors, says IIFL's Jonathan Schiessl

The cut in corporate tax and removal of additional surcharge on capital gains made by FII and domestic investors bode well for the Indian market, said Jonathan Schiessl, Senior Vice President | Fund Manager - IIFL India Equity Opportunities Fund, in an interview to CNBC-TV18.

He opined that the announcements made will certainly draw the attention of foreign investors.

He said the positioning of overseas investors in India is at multi-year lows and also there has been a large overhang about what is going to happen with global economy with respect to trade war, oil concerns, etc.

"So, if one wants to allocate money towards India, though there is overhang (oil and trade war related problems) in emerging markets, floor has been placed and probably this is very positive place to start for investing," he said.

India has consistently outperformed other emerging markets but in the recent past, overseas investors were hearing miserable stories about India like weak CASA, growth slowed down to 5 percent, liquidity problems etc. The current move ensures the right noises are being made, Schiessl said.

"The cut in corporate tax gives lot of cash to companies to use for capex and increase employment, so there could be increasing expectations of quicker recovery and hence to look domestic companies makes sense certainly after today's move," he said.