Introduction of LTCG tax erodes Nifty, Sensex gains
In its initial reaction equity market has given a thumb down to budget as Nifty and Sensex eroded early gain post the announcement of Long-Term Tax Gain (LTCG) of 10 per cent on gain over Rs. 1,00,000 without indexation benefit. The FM said that the total amount of exempted capital gains has surged to almost Rs 3,67,000 crore as of last year’s returns.
Even on the fiscal deficit front, they have not stuck to FRBM estimates, which is bad news for many PSU banks as bond yield will rise and will impact their treasury benefits.
Further, the government raised import duty on mobile and mobile accessories from current 15 per cent to 20 per cent.
Taking cue from the budget updates, the markets are trading negative as Sensex is trading 100 points down at 35890 mark and Nifty was down by 34 points at 10,993 mark.