Tax rate cut: Brokerages rejig index targets; Chris Wood ups India exposure

Besides Wood, Nomura, too, has revised its Nifty50 target for March 2020 to 12,545 on the back of a potential 7 per cent earnings increase in FY20/21

A cut in corporation tax rate by the government on Friday has made even foreign investors sit up and take notice. While most brokerages have revised their calendar and fiscal year-end targets for the frontline benchmarks, foreign investors too have started to rejig their equity exposure.

Christopher Wood, global head of equity strategy at Jefferies has hiked his exposure to Indian equities by 3 percentage points (ppt) following the government’s announcement to slash corporation tax to an effective 25.2 per cent from the earlier 35 per cent.

The move, Wood wrote in GREED & fear – his note to investors,