INSUBCONTINENT EXCLUSIVE:
This is the gist of Union Budget 2020.
The over Rs 3,50,000 crore wealth destruction on BSE on Saturday showed that investors gave a thumbs
The fall of nearly 1,000 points on the Sensex showed the equity market was expecting much more from the government.
From an investment point
of view, the tweak in dividend distribution tax (DDT) is going to impact individuals who fall in the higher tax bracket
The government on Saturday proposed to remove DDT on companies, and henceforth, the tax will be shifted to the recipients at the applicable
rate.
The government also disappointed investors, but denying any relaxation in the long-term capital gain (LTCG) tax.
Market sentiment was
already weak in the country due to the ongoing protests related to CAA and NRC and the outbreak of coronavirus was adding salt on the wounds
I believe at the index level, the market will remain under pressure for the next 5-10 days
However, specific stocks will continue to deliver healthy returns.
Capital markets are not the only responsibility of the government, which
has to look at other things such as agriculture, industries and services sectors.
The government has taken all the decisions that are good
for the economy as well as the country
They will ultimately benefit the stock market in the long run.
Market participants should see what the government is doing to try and revive
It is not necessary that the government would announce measures for the economy in the Budget
They can come on a later date too
