INSUBCONTINENT EXCLUSIVE:
The government announced measures on Friday to revive economic growth and markets including the withdrawal of higher taxes for foreign
reporters the government had decided to withdraw the surcharge on FPIs which she had unveiled in her budget for the fiscal year ending March
2020.Madhavi Arora, lead economist at Edelweiss Securities:"Policymakers emphasised that they are keeping a watch on the wealth creators
In this context, the withdrawal of FPI and DII enhanced surcharge of long- and short-term gains are welcome move and would have a marginal
fiscal impact of Rs 1,400 crore.""The move to release Rs 70,000 crore of funds upfront to recapitalise public sector banks rather than phase
out funds through the year will have a better multiplier effect for credit expansion."The government also re-emphasised that it is
consulting with banks to encourage them to link their loan rates to the external benchmark, something that even the RBI had emphasised in
the August policy."Sandip Sabharwal, Fund Manager:"Removal of surcharge for all investors as well as upfront funding of PSU Banks is good
Measures on the auto sector are incrementally positive
However, we need to see if the GST council also moves on this."Omkeshwar Singh, head of Rank MF, SAMCO Securities:"This was a much needed,
detailed press conference amid different voices
The (surcharge) rollback will have a positive impact, and also shows that the government does listen to the industry and take appropriate
corrective measures."Rusmik Oza, head of fundamental research, Kotak Securities:"The withdrawal of enhanced surcharge on FPI is a big
positive for Indian markets as it could reverse the outflows seen since post-budget
It should also help INR appreciation
Overall, a good sentiment booster for the Indian economy."Aishvarya Dadheech, fund manager, Ambit Asset Management:"(In the) last
one-and-a-half months, it was adverse sentiment that led to intense drawdown in the broader market
We believe this move will be taken very positively by the street as the overhang of an increase in tax incidence has been removed
It will also send the right signals to global market participants who are infused with ample liquidity."Get Breaking news, live coverage,
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