Government slashes corporate tax; Markets cheer

Finance Minister Nirmala Sitharaman’s giant tax cut will lead to corporate profits rising by 30 percent. The stock markets celebrated this profit boost with a six percent rise which is the single day biggest point gain in the history of Dalal Street.  On the other hand bond markets have seen probably their biggest fall in recent times, indicating that the fiscal stimulus comes at a cost, the cost of higher yields. Is this a big price to pay? Not necessarily.