While the move is positive for minority shareholders and it will lead to a better price discovery, some MNCs with low public float may even prefer to delist instead of relinquishing their stakes
FM Sitharaman specified multiple provisions and structural changes towards the banking sector, starting with provision of about Rs 70,000 crore in terms of additional capital infusion to state-owned banks to support credit improvement.
Finance Minister Nirmala Sitharaman will present her maiden Union Budget 2019 on July 5, which will be keenly watched by the Dalal Street. In order to kick start the economy, and to encourage investments, Sitharaman may raise income tax exemption limit for an individual income tax payee, which can boost consumption-based stocks.
Most of the market experts have maintained a stable outlook on the infrastructure sector and the recent trends suggest an optimistic outlook on the infra stocks on a near-term basis.
Finance Minister Nirmala Sitharaman will present her maiden Union Budget on July 5 this year. Union Budget 2019 is likely to focus on infra development, providing tax relief to common man, resolving agrarian crisis, creation of jobs, disinvestment and fiscal consolidation.
Finance Minister Nirmala Sitharaman will present her maiden Union Budget on July 5 this year. Market expects Sitharaman to scrap Securities Transaction Tax (STT) to raise volumes on the bourses.
Withdrawal of capital gains tax can help bring stability in the market while making the investments in stock market and mutual funds more lucrative and beneficial for the investors. Removal of LTCG will help channelise more funds to markets either directly or through mutual funds.
In her Budget speech, Sitharaman is expected to focus on making housing more affordable for the masses and arrange GST cuts as well as promote affordable housing for weaker section through credit linked subsidy.
Sensex has risen 8.82% compared to the 36,469 level on February 1 when last Budget was presented by former FM Arun Jaitley. Similarly, Nifty has gained 8.92% during the same period.
Sitharaman will have to walk a tight rope between fiscal prudence and spending on social welfare. The budget will set the tone for the next five years and offer insights into its thinking and critical focus areas.
Banks' recapitalisation and infrastructure outlay in the budget would help in reviving investment demand. Job creation is the need of the hour, and the government might offer fiscal incentives for adding new capacity by industrial units in economic zones for 'Make in India' initiative.
Increase in LTCG tax is expected to reduce gains in the benchmark indices Sensex and Nifty this year. While Sensex has gained 9.55% since the beginning of this year, Nifty is not far behind logging 8.77% rise during the same period.
Since the law does not allow long-term loss to be offset against short term gains, the investor would need to pay full tax on short term gains which would be significant since no cost is associated with bonus shares.
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