Union Budget 2019 India: The stock markets are expected to remain range-bound under the 12,000-level up to the budget, even as a few of the reforms have already been factored by them, said a market strategist.
Union Budget 2019 India: The stock markets are expected to remain range-bound under the 12,000-level up to the budget, even as a few of the reforms have already been factored by them, said a market strategist. The bourses are only likely to react if any systemic reform comes through in the budget to be presented by Finance Minister Nirmala Sitharaman on July 5, Nikhil Kamath, Co-Founder & Chief Investment Officer, Zerodha told Financial Express Online. “STT reduction or for it is written off as a tax input remains on top of the wishlist, a significant reduction in STT will aid price discovery and make the markets efficient,” he also said.
The markets expect the government to do away with the Securities transaction tax (STT) which was originally introduced in 2004 by the then Finance Minister P Chidambaram to stop the avoidance of capital gains tax, he added. When asked about the stock market investment strategy ahead of budget, Nikhil Kamath said that the investors must adopt a ‘wait and watch’ strategy since the markets are expected to be largely range-bound in the range of 11600-12000.
About the slowdown hitting the domestic economy, Zerodha co-founder also said that since the broader industry seems to be entering a slowdown, it’s expected of the government to soon bring in reforms in the automobile, manufacturing and realty sectors.
Finance Minister Nirmala Sitharaman will present the maiden budget of re-elected Prime Minister Narendra Modi-led NDA government on July 5. The budget is expected to introduce much needed sops and reforms so as to revive the stagnating economy.