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Last Updated : Sep 20, 2019 04:32 PM IST | Source: Moneycontrol.com

Corporate tax rate cut will boost earnings by 15-17%: Sushil Kedia

Kedia said a sweeping macro move may not change the relative attractiveness of stocks.

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Slashing corporate tax rates is a 'regime change' sort of move and will work for over 10-15 years, said Sushil Kedia, Founder, Kedianomics, in a chat with CNBC-TV18.

"PAT of the companies, after the new tax rates, will improve and I see an almost 15-17 percent jump in earnings," he said.

He added that as the cost of capital collapses, India can over time become a realistically attractive tax jurisdiction for global business.

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However, he cautioned that the story of global markets remains won't see a massive change. So, for the Indian market, 11,200 11,135 is a cluster which must hold for a move towards 11,645 and 12,000 or more.

"While a 5-legged move has already happened intraday, let's watch for the pullback," he said.

He added as the pullback materialises, the structure of the waves will tell us more accurately whether we are revisiting 11,600 again or we are straight going to 13,000.

Kedia also said a sweeping macro move may not change the relative attractiveness of stocks, either technically or fundamentally.

"NCC, NBCC, L&T look safe bets on the chart structures for 3-6 months. BPCL, ONGC, Oil India and Coal India also looking good for one week to three-month time frame.

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First Published on Sep 20, 2019 04:25 pm
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