Rough Ride Of Negative Returns

It has been a couple of years, markets have been facing a rough patch due to a host of global and local reasons. CY19 continues to be an action-packed year, with the first half dominated by the uncertainty around politics and subsequently by economic slowdown. Weak GDP print of five per cent in 1QFY20 emphasised the extent. FII interest in Indian equities has been subdued. The Budget proposal to hike surcharge on FPIs had spooked foreign investors, who withdrew more than $3.4 billion (Rs24,500 Crore) from domestic equities  in July and August. The government has responded by announcing a series of steps to revive growth since August. Withdrawal of enhanced surcharge on FPI was definitely one of the many welcome steps. The first big surprise came in the form of a structural reform, where the government announced reduction in corporate tax rates to 22 per cent for existing companies...