Tweet Buster: Tax cut on EVs is not enough; all eyes on RBI meet

NEW DELHI: Pessimism ran high on Dalal Street this week with benchmark indices ending lower in four out of five sessions. The last-minute respite on Friday came from a handful of stocks, not quelling away the fears of a bear market.Some of the top D-Street analysts believe that we are in this bear phase for the long haul and many blame government policies for the same. Besides FII outflows, a lot of corporate governance issues are plaguing the Street and over-leveraging is coming to haunt many top firms.Here’s sampling some of them: Professor Sanjay Bakshi said that the wealth destruction is on a massive scale and in most cases that not the damage is permanent. He listed over-leveraging and crookedness of the management as the causes.Wealth destruction on a massive scale. In most of these cases, the impairment is permanent. And the usual suspects… https://t.co/wBUzjvIHgA— Fundoo Professor (@Sanjay__Bakshi) 1563985758000 PMS fund manager Basant Maheshwari said the Street was sitting at the maximum possible pessimism. Sticking my neck out: The street is sitting at the point of maximum possible pessimism. Looks like we getting read… https://t.co/eQ8vjVDsZD— Basant Maheshwari (@BMTheEquityDesk) 1563938271000 In another tweet, Maheshwari explained the biggest issue with the bear market. The biggest problem of a bear market is you lose a few years of your time betting on the wrong horses. And you lose… https://t.co/Mn4vt1Oywz— Basant Maheshwari (@BMTheEquityDesk) 1564203454000 Sandip Sabharwal, an independent market expert, took to Twitter to put forth his concerns regarding what could happen to Indian market if the global markets were to correct. Indian Governments tax policies have made Indian Markets underperform significantly even as other markets have rall… https://t.co/pqXDrz1M4K— sandip sabharwal (@sandipsabharwal) 1564072262000 Sabharwal shared data for Nifty performance from May 31, 2019 in which showed the benchmark has turned negative by 6 per cent while Dow Jone has surged some 10 per cent. He added, "MPC Policy meeting now critical for markets."From 31st May 2019 Dow Jones IA up 10% NIFTY down 6% Money chases performance. MPC Policy meeting now critical fo… https://t.co/b5mIfSul9R— sandip sabharwal (@sandipsabharwal) 1563953311000 In another tweet, Sabharwal said that data suggests if July is a poor month for the market, then August is most likely to follow suit. Empirical evidence suggests that if July is a down month for the markets Most of the times August is also down I… https://t.co/vBM3cr1umG— sandip sabharwal (@sandipsabharwal) 1563854786000 Value investor Safir Anand although hopes that ICICI Bank results could bring relief to the market. Icici results should bring some relief to mkts.— Safir (@safiranand) 1564237114000 On a lighter note, Maheshwari commenting on the massive FII outflows said, "Seems that the foreigners have finally taken our 1942 call for a ‘Quit India movement’ quite seriously." Seems that the foreigners have finally taken our 1942 call for a ‘Quit India movement’ quite seriously.— Basant Maheshwari (@BMTheEquityDesk) 1563896182000 GST COUNCIL MEETIn another important development, the GST council reduced GST on electric vehicles, but Maheshwari and Sabharwal are not sure if it would bring any benefits for Indian companies.Maheshwari thinks it wouldn't bring any demand for EVs but might lead to short-selling in auto stocks.Lowering GST and other charges on Electric Vehicles won’t create demand for EVs.There is just no infrastructure. Pe… https://t.co/XI2XX979kI— Basant Maheshwari (@BMTheEquityDesk) 1564283523000 Sabharwal says the incentive should be on production and not buying because otherwise, it would lead to imports from China. Reducing GST on EVs to 5% Giving tax break on interest Might look good but creates a significant market distortion… https://t.co/ensB6acQQE— sandip sabharwal (@sandipsabharwal) 1564238271000 Very few industries in #India are globally competitive in cost/technology & also creates a huge No of jobs i.e.… https://t.co/8S1MmIB75k— sandip sabharwal (@sandipsabharwal) 1564239654000 To top off, here's another song from market expert Vijay Kedia on the state of the stock market in India. Enjoy! My Fifth song about the current situation of the stock market written & sung by me! Do listen to it and share your… https://t.co/56npKbgbmC— Vijay Kedia (@VijayKedia1) 1564119621000

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