Monday, 23 Sep, 12.55 am Asian Age

Market
More upside could be in store

According to experts, the tax cut decision will drive the market in the short run.

Mumbai: The positive momentum triggered by the tax cuts announced by the government could drive the market higher even as factors like F&O expiry as well as foreign fund flows are the factors to watch out in the week ahead.

"The market will witness a revival in enthusiasm as the newly announced fiscal measures will give relief from the slowdown fears in the domestic market," said Vinod Nair, Head of Research Geojit Financial Services.

The market surged on Friday after the corporate tax rate cut was announced by the government, driving the market higher by 5 per cent taking the Nifty closer to 11300 and Sensex to above 38000. The broader market also gained as Mid-Cap and Small-Cap stocked surged. Investors added about Rs 7 lakh crore to BSE listed companies' market capitalisation.

According to experts, the tax cut has the potential to create a multiplier effect by stimulating consumption depending on the moves taken by corporates. The move has far reaching implications going forward than merely being a 10 per cent reset. This huge tax reform has the potential to rope in global companies into India and leverage the India opportunity amidst the ongoing trade war.

However, foreign portfolio investors withdrew a net amount of Rs 5,577.99 crore from equities while infusing Rs 1,384.81 crore into the debt segment.

The trend is expected to reverse on the back of fiscal relief measures announced by the government, experts said.

"A variety of technical indicators shows that markets could be attempting a retracing back to higher levels. Of course the result season starts soon but many sectors are oversold so unlikely that we may weaken if earnings disappoint," said Vikram Kasat, Head Advisory, Prabhudas Lilladher.

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Disclaimer: This story is auto-aggregated by a computer program and has not been created or edited by Dailyhunt. Publisher: Asian Age
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