Government actions and its side effects

government actions and stock markets side effects

Indirect tax reformed

Direct tax would be reformed.

Tax reduction reduces commodity prices used generally.

Reduced commodity prices increase consumption.

Increased consumption results growing output and more expenditure.

Growing output means improving GDP.

Improved GDP means improving results by domestic companies.

Improved results means increasing valuation of the companies.

Increased valuation means high stocks prices and better market valuation

Second part

Bank recapitalisation

Which resulted clean balancesheet
Clean balance sheet means improving Assest quality.

Improved Assest quality means increasing credit growth.

Increased credit growth means corporate borrowing for working capital.

Corporate borrowing means expansion in the existing capacity.

Expansion in existing capacity means work force requirements.

Work force requirements means generations of employment.

Generation of employment means reduction in gap of rich vs poor.

Many things left and add in next post

Author: Atul Singh Stock Market Analyst

Disclaimer: This Blog, its owner, creator / contributor is not a research analyst and expressing opinion only as an individual investor in Indian equities. He/She is not responsible for any loss arising out of any information, post or opinion appearing on this blog. Investors are advised to consult financial consultant before acting on any such information. All information in this blog is posted for personal study, All information posted on blog is as available in public domain.

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