New Delhi, Oct. 11 -- In hindsight, the massive rally in Indian equities soon after the sharp cut in corporate tax rates was a case of much ado about nothing. In the two trading sessions after the tax cut, about three-fourths of all traded stocks on BSE rose. The market capitalization of the stocks listed on BSE rose 7.5% in these two trading sessions to '148.9 trillion.
But the markets have since given up nearly two-thirds of those gains, and the increase in total market capitalization since the tax cut now stands at only 2.7%. What's more, nearly 65% of all traded stocks on BSE are now below where they were before the tax cut was announced.
"It's been two weeks since the initial euphoria; and it's clear that the markets are now pricing ...