How the proposed US corporate tax rate cut could impact Indian markets, overpriced insurance IPOs and much more.
Edited highlights
1:45 One of the most important things to remember is that the United States is proposing to reduce the corporate tax rates to 20%, much lower than any part of the world
1:53 In India, it is much higher. There will be much greater incentive for US companies to shift back to the US as far as tax residency is concerned
2:02 This will play in the investor’s minds and it will have an impact
2:10 US tax reforms could slightly difficult from the emerging market perspective
2: 21 US had been imposing 12% repatriation tax for cash lying in other parts of the world.
2:27 These could be incentives or disincentives depending which company you are and where you are based
2:35 This could lead to some kind of global asset re-allocation
2:48 India has moved up 30 notches in the ease of doing business
2:55 The government has cleverly dealt with items in the index. This is very good from the foreign investment perspective
3:31 At the grassroots level, GST has still to be sorted out. Time and again govt is extending deadlines which is leading to confusion
3:42 If it doesn’t get sorted out soon, there will be still more confusion
3:56 While the bank recapitalisation plan is good but the weak banks will only get money for the NPAs.
4:02 They will not get more of growth capital which stronger banks will get
4:12 The runaway rise in bank stocks can be expected to get hampered
4:57 The pharma sector is reeling under some sort of pricing pressure
5:51 Insurance sector is coming with massive IPOs priced aggressively. The listing price is not commensurate with the issue price
6:12 IPOs where something is left on the table for the investors are the ones investors can buy with a long term perspective
