Standout performance: Corporation tax cuts spur gains for domestic markets

On September 20, Finance Minister Nirmala Sitharaman announced a reduction in the country's effective corporation tax rate from around 35% to 25%

India is the best-performing market in the past one month, having gained nearly 8 per cent. Most global markets are up an average 2 per cent during this period. The gains in the domestic markets are on account of a surprise reduction in corporation tax. On September 20, Finance Minister Nirmala Sitharaman announced a reduction in the country's effective corporation tax rate from around 35 per cent to 25 per cent. The one-month return made by the benchmark Nifty is exactly the gain analysts expect in Nifty earnings following the tax cut. In other words, after adjusting to the Nifty