While the rating agency downgraded India’s sovereign rating, BofA Securities’ economists see the present downturn as cyclical rather than structural; say fiscal stimulus is critical for recovery.
According to the international brokerage, the market is looking for some relief in personal income taxes and taxes for companies/investors.
While equity markets continue to boom, economists warn about likely ‘subject-to’ consequences of the corporate tax cuts announced last Friday.
While broader indices Sensex and Nifty 50 fell over 701 and 214 points respectively in intraday trade, S&P BSE MidCap and SmallCap fell 2.15% and 2.59% to record new 52-week lows.
A detailed look at data reveals that Modi 1.0 had a far superior record on disinvestment compared to UPA 2.0.
