Market Live: Sensex gains 1,200 pts, Nifty above 11,600; L&T up 9%, IT stocks tank

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Ashish Nanda EVP & Business Head – PCG, Commodities and Currency Business, Kotak securities:

It was totally unexpected that the government slashed corporate tax to 22% from 30% (before surcharges). It’s a huge boost to private sector investment.  Automobiles, Banks, Consumer staples and global commodity sectors will see large earning upgrades. Our FY2020E EPS for the Nifty-50 Index will increase 10% from previous estimates.

This is a permanent benefit for corporates. I feel, lower tax rate of almost 15% for new manufacturing companies will hugely boost the government’s “Make In India” campaign.  Technically, Nifty has changed the range and we would see the markets trading between 11,100 and 11,600 for next few months.

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