A likely volume recovery in the second half of FY20 and relatively reasonable valuation should support further upside in the stock
Also, state-owned power generating companies and power transmission companies, would be benefited from the lower tax incidence
While lower tax rate and attractive valuations are positives, concerns on volumes, lower e-auction realisations and divestment could weigh on the stock
At the fundamental level, analysts say the government's move to slash corporation tax rate from 35 per cent to 25.2 per cent (including surcharge) augurs well for India Inc
Earnings upgrades apart it could lead to higher volumes of premium decorative paints
Property developers are unlikely to pass on any benefit to homebuyers in the form of price cuts
Neither the tax cut nor the sector-specific measures will change the near-term growth outlook dramatically
In the process, the corporation tax system would also become more transparent, with reduced scope for litigation and discretion
Why the impact of the corporation tax cut may not be as substantial on the fisc or on India Inc
Here's a selection of Business Standard opinion pieces for the day
While lower GST would push occupancy and thereby aid room rates, lower corporate tax rate should add to earnings
With fiscal and monetary levers being pulled simultaneously, expect economic growth and corporate profit to accelerate
Fimi feels even after the govt slashed the corporate tax rates, the taxation rate is still steep for the mining sector
The basic tax rate for companies has been reduced to 22 per cent from 30 per cent earlier, and that for new domestic manufacturing companies has been cut to 15 per cent
The surprise reduction in corporate tax drove a 5.3 per cent surge in the S&P BSE Sensex Index to 38,014.62 on Friday, its biggest gain since May 2009
The liquidity framework is expected to make rate management conditioned on the prevailing liquidity in the system
The measures will augur extremely well and will be highly positive for our economy, Shaktikanta Das said at an event in Delhi
All eyes now on how the govt manages its finances
After this cut, base corporate tax rate in India has become competitive and should help boost investment
Borrowing cost for corporates can come down owing to an improved balance sheet and rating upgrades