The Union Budget and its bearish effect on the Indian markets continue to persist. The Indian markets that closed in red on the day of the Union Budget on July 23 have continued to be on the same path for the past two days.
Tax on Capital Gains Increased
The circumstances at Dalal Street were no different on Thursday, July 25, as in the intraday trade, the markets lost over 0.50 per cent.
Nifty Bank has had the worst day so far, with a loss of over 1 per cent in the early hours of the day's trading session.
The biggest drop was seen with the Nifty Bank. This index dropped by 545.60 points or 1.06 per cent, slipping to 50,771.40. |
The negative trading result on Tuesday, July 23, was in line with the previous term's trend of markets reacting negatively to the newly-sworn-in government's first budget.
The budget involved some blockbuster announcements, including the abolition of the Angel Tax. But, according to many, one of the biggest reasons behind this apparent slowdown and bearish approach lies in another announcement, that was made in the budget, in front of the 18th Lok Sabha.
At 11:28 IST, the BSE Sensex dropped below the 80K mark to 79,796.05. The index declined by 352.84 or 0.44 per cent. |
The government has proposed to increased tax on Short term capital gains or STCG from equity mutual funds and REITs/INVIT.
These proposed tax levied on STCG could jump from the current 15 per cent to 20 per cent. Long term capital gains or LTCG have not been left alone, as the tax levied on them is slated to go up from the current 10 per cent or 12.5 per cent.
In addition, Securties Servcie Tax or STT on sale of options in the securities market will be increased from 0.0625 per cent to 0.1 per cent. |
STT Increased
In addition, Securties Servcie Tax or STT on sale of options in the securities market will be increased from 0.0625 per cent to 0.1 per cent.
These factors according to observers may have made some investors or potential investors wary of venturing in.
The markets wavered, but largely traded in red in Thursday. At 11:28 IST, the BSE Sensex dropped below the 80K mark to 79,796.05. The index declined by 352.84 or 0.44 per cent.
The NSE Nifty was different, as the index dropped by 80.60 points or 0.33 per cent, slumping to 24,332.90.
The biggest drop was seen with the Nifty Bank. This index dropped by 545.60 points or 1.06 per cent, slipping to 50,771.40.
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