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Sita Mata Liberates Dalal Street, Ends Bears’ Reign Of Terror



Finance Minister Nirmala Sitharaman’s radical reforms have turned the tables on the Bears and cleared the path for the Bulls to take charge of Dalal Street. Experts have opined that these reforms will unleash “Animal Spirits” and usher in the “Mother of all Bull markets“. We have to urgently identify the stocks which will benefit from the reforms and grab them ASAP




Bears slaughtered en masse to pave way for ‘Howdy Modi‘ jamboree

Initially, Nirmala Sitharaman (fondly known as ‘Sita Mata‘ by the novices of Dalal Street), tried to scare the Bears by introducing petty reforms like banning e-cigarettes etc.

However, these were too frivolous to scare the battle-hardened Bears.

They refused to budge and instead mocked her by likening her press conferences to ‘Kumkum Bhagya‘, a TV serial popular with bored housewives.

Ultimately, on the eve of NAMO’s ‘Howdy Modi‘ jamboree in the USA (which President Trump will also attend), Sitharaman realized that she is running out of time and has no choice.

She came personally to Dalal Street and unleashed the ‘Brahmasthra‘.

The weapon cost a massive fortune of Rs. 1.74 lakh crore.

However, it did the job in an efficient manner.

The Bears had nowhere to run or hide.

They were slaughtered en masse and their reign of terror on Dalal Street ended finally and in a decisive manner.

NAMO described the reforms as historical and claimed that it will attract private investment from across the globe, improve competitiveness of our private sector, create more jobs and result in a win-win for 130 crore Indians.

Eminent Billionaires and captains of Industry also welcomed the move.

However, the ‘Brahmasthra‘ took rival politicians like RaGa and other junkyards by surprise.

They were at a loss for words and mumbled incoherently.





Bulls storm in, Stock markets surge to biggest 1-day gain in 10 years

The Bulls, who were tormented by the Bears over the past 24 months, stormed the gates of Dalal Street and took charge, mercilessly slaughtering the few remaining Bears who were running for their lives.

In the melee, the Sensex surged a colossal 2000 points, breaking the World record for biggest 1-day gain in 10 years.

Best stocks to buy

Best stocks to buy – FMCG stocks are beneficiaries of rate cut

It is elementary that the reduction in the tax rates will benefit those stocks which are paying high rates of tax.

According to Mangalam Maloo of CNBC TV18, blue-chip MNC stocks like Nestle, ITC, Asian Paints, Colgate, HUL and GSK Consumer are big beneficiaries because they pay tax at rates of up to 35%.

In contrast, companies like Godrej Consumer, Dabur and Emami stay unaffected because they already pay tax at rates ranging from 19-22%.

“The most important benefit from an investment perspective is, while tax cuts across the board are a big positive, FMCG may be first among equals. The high PE Multiple that FMCG sector trades at would imply a higher change in stock price, given incremental growth in EPS. For Example, improvement of EPS by Rs 1 for 20X PE Stock would mean Rs. 20 increase in Stock Price while the same would be higher by Rs. 45 for a stock trading at higher valuations, assuming everything else remains constant,” it is opined.






Sonal Bhutra, the CA, pointed out that even PSU giants will benefit from the tax rate cut.

Buy-back stocks will also benefit

Another obvious beneficiary of the reforms will be companies which have announced buy-backs before 5th of July 2019.

Such companies are exempted from the dreaded buy-back tax.

A list of companies which announced buybacks before July 5 but have not proceeded yet is available here.

Pharma stocks will also prosper

Exta Batra, the expert on the Pharma sector, has opined that all Pharma companies will benefit, especially those with 100% domestic focus.





You missed 1991 and 1997. Don’t miss 2019

The pundits of Dalal Street are understandably in high spirits.

Basant Maheshwari reminded novices that this is not the time to sit on the fence and pontificate.

Instead, we have to dive in head first and go all out.

“This is early and timely Diwali. This is not bigger than budget, this is bigger than 20 budgets,” Samir Arora gushed, delirious with joy.

Porinju Veliyath claimed that the “Animal Spirits” have been unleashed and that there is now no looking back for the Bulls.

He called it the “beginning of the Great Indian Dream“.

Vijay Kedia equated Sitharaman’s reforms with the historic 1991 reforms of PV Narasimha Rao and Manmohan Singh, which led to the Mother of all Bull Markets.

However, Shankar Sharma, who has a rabidly anti-NAMO stance, was not much impressed.

He described the Country as “Bananaistan” in a contemptuous manner and downplayed the reforms.









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8 Comments
  1. Preetika's Gravatar Preetika
    September 21, 2019 at 2:07 pm | Permalink

    Shankar Sharma is absolutely right! NYAY scheme would have been a better reform than these tax cuts.Very hard to get balanced view or sane voice like Shankar Sharma these days. NYAY would be a game changing move and a great transformation!

    Reply
  2. ssk's Gravatar ssk
    September 21, 2019 at 6:14 pm | Permalink

    where is kharab?? keep on shouting on modi… Now i hope your brain will start work…..

    Reply
  3. Ram Babu B.Com's Gravatar Ram Babu B.Com
    September 21, 2019 at 6:23 pm | Permalink

    It is too early to celebrate. Slowdown is still there and economy is in bad shape. Better wait for quarter to see improvement in results before buying stocks.

    Alternative is to buy small amounts, 25% of total portfolio now and stagger buying balance for later.

    Reply
  4. Krish's Gravatar Krish
    September 21, 2019 at 9:01 pm | Permalink

    Looked to me as if half the gains on Friday came from short covering. Many shorted at around 1000 levels and caught off guard. I am not really sure friday’s announcement is bigger than Modi’s landslide victory first and second time and calls for a rally of a decade on a single day.

    Reply
  5. Kamal Garg's Gravatar Kamal Garg
    September 22, 2019 at 11:13 am | Permalink

    Dangerous rally of more than 2000 points in a single day with tax cut announcement conveyed in a head line grabbing manner. Remember the tax cut has been from 30% + surcharges & cess to 25% + surcharges & cess with no exemption and deduction claimed/allowed.
    See the fine print and then celebrate.
    Announcement on MAT is welcome and so is on new companies w.e.f. 01.10.2019.

    Reply
    • bhat's Gravatar bhat
      September 22, 2019 at 1:06 pm | Permalink

      Effective tax rate is 25.17% (22%+surcharge+cess all including)
      around 10% less than current one

      Reply
      • Kamal Garg's Gravatar Kamal Garg
        September 22, 2019 at 6:55 pm | Permalink

        Yes, it is 22% against 30% earlier with applicable surcharge and cess.

        Reply
  6. Ajay's Gravatar Ajay
    September 22, 2019 at 11:29 pm | Permalink

    Mega bull run has started in sensex. It may cross 45k by December on this massive reform.

    Reply

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