nothing much for the industry.
neither the budget gave any sops to salaried people. giving additional rebate of Rs 20k in tax slabs is just peanuts. It won't help much.
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Budget Fails To Boost Stock Markets
The stock market may have been high on the radar while finmin Pranab Mukherjee was composing the Budget papers, but there was no definite measure in the Budget to boost investors.
The BSE Sensex on March 16 shed 209.65 points to end the week at 17,466.20 whereas the broad-based Nifty shut the shop after shedding 63 points at 5,318.
The majority of sectoral indices also closed the week in the negative as market analysts as well as investors looked for more fundamental measures with the aim to cheer the economic system.
The lack of big-ticket transformations or a big encouragement to the infrastructure segment left investors dissatisfied, whereas the lofty level of administrative borrowing that could leave rates of interest high left the stock market a bit worried.
Mr. Mukherjee partly met one of the longest-pending demands of the broking society by bringing down the securities transaction tax (STT), though only on delivery trades, whereas gifting retail capitalists an incentive plan through the Rajiv Gandhi Equity Savings Scheme.
Market participants stated that the steps will only have a sentimental impact on the stock markets as the actions taken by the administration would impact a minority set of capitalists.
The finmin cut securities transaction tax only on delivery deals by around 20% from 0.125% to 0.1%.
Motilal Oswal, chairman and managing director, Motilal Oswal Financial Services, said, “The 20% reduction in STT on delivery transaction is much below expectation.”
“Delivery transactions account for around 10% of the overall volume so it will not make much of a difference,” Motilal Oswal added.
At present, securities transaction tax is charged at 0.125% for delivery transactions and 0.025% on non-delivery trades.
The administration also declared the Rajiv Gandhi Equity Savings Scheme to hearten the flow of savings in financial instruments and develop the depth of domestic capital market.
Sanjay Sachdev, president and CEO, Tata Asset Management stated, “Capital market-related measures such as Rajiv Gandhi Equity Saving Scheme and reduction in STT on delivery transactions will provide much needed impetus to attract small investors to the market.”
nothing much for the industry.
neither the budget gave any sops to salaried people. giving additional rebate of Rs 20k in tax slabs is just peanuts. It won't help much.
Indian stock markets ended on a quiet note as several key events such as the monetary plan and the federal budget failed to excite investors.
the 30-share index BSE Sensex sheds 75 points after initial upmove.
the stock of HDFC Bank also dropped
Sensex, Nifty down 1%; RIL, TCS slump
Sensex likely to open flat today
Sensex gains 73 points on low-level buying
April could well be cruel month for stock market, FIIs
