{"id":290,"date":"2019-09-25T10:04:23","date_gmt":"2019-09-25T10:04:23","guid":{"rendered":"http:\/\/www.assetmultiplier.co.in\/blog\/?p=290"},"modified":"2019-10-03T10:41:33","modified_gmt":"2019-10-03T10:41:33","slug":"more-needs-to-be-done","status":"publish","type":"post","link":"https:\/\/www.assetmultiplier.co.in\/blog\/2019\/09\/25\/more-needs-to-be-done\/","title":{"rendered":"More needs to be done"},"content":{"rendered":"\n<p><strong>Update&nbsp;on\nthe Indian market:<\/strong><\/p>\n\n\n\n<p>On Tuesday, NIFTY lost its\nwinning streak. It closed -0.10% lower. Among sectoral indices NIFTY PSU Banks\n(-2.34%), NIFTY BANK (-1.25%), NIFTY Financial services (-1.9%), NIFTY Auto (-0.38%)\nand NIFTY Metal (-1.63%) closed lower while NIFTY IT (+1.98%), NIFTY Pharma (+0.44%)\nNIFTY FMCG (+0.62%) ended on a positive note. The biggest gainers were Infosys\n(+3.88%), Zeel (+3.66%), Tech M (+3.11%) whereas Eicher motors (-3.84%), State\nBank of India (-4.06%), JSW steel (-4.19%) ended with high losses.<\/p>\n\n\n\n<p><span style=\"text-decoration: underline;\">Excerpts from a panel discussion with R.C. Bhargava, chairman, Maruti Suzuki India Ltd; Pawan Goenka, managing director of Mahindra and Mahindra; and Rajiv Bajaj, managing director of Bajaj Auto Ltd with CNBC TV18.<\/span><\/p>\n\n\n\n<ul><li>Finance\nMinister in a totally unexpected move reduced corporate tax on Friday.\nEffective tax rate now stands at 25.17%, inclusive of surcharge and cess. This\nmove will help companies to increase their profitability. FM quoted that it\nwill lead to revenue loss of \u20b91.45tn.<\/li><li>Speaking\nabout further discounts in auto sector, Mr Bhargava (Chairman, Maruti Suzuki)\nrules out the scope of further price cuts out of the tax savings. He says if we\ntake a look at savings from the tax cut it is about one-fifth or one-sixth of\ntotal tax payment.<\/li><li>Mr\nBhargava believes, it is better to pump benefits back in the company in the\nform of capex, more investments rather than more discounts in an environment\nwhere the discounts are at a peak.<\/li><li>Mr\nBhargava says, Manufacturing in India has never grown at a high rate. The tax\ncuts will make manufacturing industry competitive. Moreover, customers don\u2019t\nbuy during uncertainty. Now that GST overhang is out of the way, we can see\npeople making decisions.<\/li><li>Mr\nBhargava believes, coming October will see much better retail sales than in the\nprevious months.<\/li><li>Mr\nGoenka (MD, Mahindra &amp; Mahindra), also praises the corporate tax cut as it\nwill make Indian companies globally competitive.<\/li><li>He\nsays, a wrong expectation has been coming out in the last two-three days that\nbecause of this, auto companies would be able to reduce prices. Tax cut is a\nstimulus which will help in mid and long term in the form of higher capacity,\nincrease in employment rate.<\/li><li>On\ndiscounts he believes that even if entire benefit is transferred, M&amp;M will\nbe able to reduce vehicle price by about 0.5%, which means on a \u20b98 lakh car by about \u20b93,000.<\/li><li>Mr\nGoenka believes that there is a sentiment boost in the market which was needed\nin current scenario.<\/li><li>Mr\nRajiv Bajaj (MD, Bajaj Auto) is also of the same opinion that this will benefit\nin the long run. Talking about its immediate effect on Bajaj Auto, the heavy\ninvestment in consumer offers and media spends that they have undertaken in a\nquarter will be reimbursed because of the lower tax rate.<\/li><li>Taking\nabout reduction in tax for new entities, he says it might help Bajaj as it is about\nto sign-up with Triumph. How it turns out is a matter to look at.<\/li><\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Update&nbsp;on the Indian market: On Tuesday, NIFTY lost its winning streak. It closed -0.10% lower. Among sectoral indices NIFTY PSU Banks (-2.34%), NIFTY BANK (-1.25%), NIFTY Financial services (-1.9%), NIFTY Auto (-0.38%) and NIFTY Metal (-1.63%) closed lower while NIFTY IT (+1.98%), NIFTY Pharma (+0.44%) NIFTY FMCG (+0.62%) ended on a positive note. The biggest [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[20],"tags":[21],"_links":{"self":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/290"}],"collection":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/comments?post=290"}],"version-history":[{"count":1,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/290\/revisions"}],"predecessor-version":[{"id":291,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/290\/revisions\/291"}],"wp:attachment":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/media?parent=290"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/categories?post=290"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/tags?post=290"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}