ALSO READBudget 2018: From digitisation to NPAs, a lot expected for banking sector Budget 2018: Budgetary support for Indian Railways to be cut by 27% in FY18 Budget 2018 might have Rs 740-bn allocation towards fertiliser subsidy Markets end at record high, Nifty above 11,100 as FY19 GDP seen at 7-7.5% Sensex ends marginally lower, Nifty holds 11000 as investors await Budget
Views on LTCG by Aashish Somaiyaa, MD & CEO, Motilal Oswal AMC Equity markets were keeping fingers crossed for imposition of Long Term Capital Gains tax, which has finally come. Having STT and LTCG both is unfair when former was levied expressly in lieu of latter. Happy with the 10% LTCG tax on MFs & the 10% tax on dividends this move will reduce churn and mis-selling. LTCG implementation is at least well thought out; no disruptive impact. Therefore, over a period of time this tax incidence will be taken in stride and normal life will continue as far as investments in equities is concerned. 10% is modest and grandfathering earlier gains is a positive. It is not a big negative and markets should eventually digest it Market rundown by Jayant Manglik, President, Religare Broking The much-awaited Union Budget turned out to be a balancing act, pleasing some and disappointing others. The announcement of long term capital gains on equity investments combined with possible slippage in meeting fiscal deficit target dampened the sentiment. Personal income tax too should have been addressed, or at least the slabs indexed to inflation. The focus on Bharat as well as farmers was expected and necessary. We might see an overhang of this event for next couple of sessions and then focus will return to earnings. Signals are in the favor of consolidation in the index while profit taking may continue on the broader front. We reiterate our bullish yet cautious stance and suggest preferring index majors for trading Top Sectoral loser: Nifty pharma Sectoral Trend Sensex top gainers and losers Market at close Benchmark indices ended marginally lower after the government imposed a long-term capital gains tax. Budget 2018 has proposed to levy long-term capital gains tax (LTCG) of 10% on gains exceeding Rs 100,000 from sale of equity shares. The S&P BSE Sensex ended at 35,906, up 58 points while the broader Nifty50 index settled at 11,016, up 10 points.