Investors on Wednesday are likely to keep an eye on the 33rd GST Council meeting, due later in the day. According to news reports, the government is expected to cut GST rates on under-construction residential properties.
Moreover, US-China trade talks and minutes from the US Federal Reserve's January policy-setting meeting will also be on investors' radar. Apart from this, crude oil prices, movement of rupee against the US dollar and stock-specific action will also influence the sentiment.
Among major development, an indicator released by the World Trade Organisation (WTO) to gauge global trade for January-March, 2019, has hit a nine-year low. Analysts say if global trade slows down, exports from India may face repercussions.
STOCKS IN FOCUS
GMR Infra: According to a Business Standard report, GIC and Mitsubishi Corporation are likely to pick 25-30 per cent stake in GMR Airports. The deal is expected to be announced very soon, the report said.
YES Bank: The private sector lender on Tuesday denied any wrongdoing stating that the ‘zero divergence’ disclosure was done to comply with the listing regulations and to ensure information symmetry.
Indian Hotels: The company on Tuesday announced its entry into the homestay market with a new brand Ama Trails & Stays.
Asian stocks gained a tad on Wednesday after US-China trade talks resumed while investors awaited minutes from the US Federal Reserve for clues on policymakers’ thinking on interest rates and its balance sheet reduction policy. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.2 per cent in early trade. Japan’s Nikkei gained 0.4 per cent.
In the overnight trade, US stocks ended higher, lifted by upbeat results from Walmart.
Oil prices hovered near 2019 highs on Wednesday, supported by OPEC-led supply cuts.
Angel tax relief for startups: Funding cap for exemption raised to Rs 25 cr
Bowing to sustained pressure from start-ups and venture capital funds over the so-called angel tax, the government on Tuesday eased tax norms for new businesses in a bid to boost investment and job creation.
The angel tax is levied on start-ups that have received equity infusion in excess of the fair valuation, with the premium being paid by investors as their income. It was introduced in the 2012-13 Budget by the then finance minister Pranab Mukherjee to curb money laundering .
The government has allowed start-ups that have raised capital up to Rs 25 crore to claim tax benefits, as against Rs 10 crore earlier. It has also announced a slew of waivers and a definition tweak in line with demands from the sector. Exemptions have been allowed for investments by non-resident Indians and alternative investment funds (AIFs) as well as for the infusion of capital into start-ups in the form of equity stake in a listed company, according to the latest norms issued by the Department for Promotion of Industry and Internal Trade (DPIIT).