LTCG Tax Impact on Market today: 500 Points After Break, Sensex, Nifty above 10650:
The impact of long-term capital gains tax on weak global signals and earnings on stocks has affected the domestic share market on Monday. In the early trading, the Sensex had broken 545 and the Nifty was up 173 points. But later, heavyweight stocks Reliance Industries, ITC, Bharti Airtel, Tata Motors and Power Grid firmly recovered from the lower level in the market. Improve 200 points below the Sensex. There was a recovery of 70 points in the Nifty. Arun Kejriwal, founder of Chris Research, says that after the announcement of long-term capital gains tax, investors are making profit booking, which is showing decline.
LTCG is Not the Reason for Tax Sales:
– Finance Secretary Hansukh Adhiya blamed the weakness in the global market for the continued decline in the market. Adiya said that there is no reason to sell the long-term capital gain tax market.
Why Fall in the Market?
– On February 1, the Federal Reserve had not hiked interest rates, but fear of growing bond yields in the US has seen a huge decline in US markets on Friday. In the US, LTCG Tax Impact on Market today: 500 Points After Break, Sensex, Nifty above 10650 the 10-year bond yield has reached 2.85%. Moving Bond Yield is an indication of an increase in interest rates, resulting in Dao Jones 666 points fall.
The impact of a massive fall in US markets on Friday was seen in Asian markets on Monday. Japan’s market Nikkei is trading 565 points down at 22,709 points.
The government has set a target of fiscal deficit of 3.5% to FY18. Market experts believe that if the government had kept fiscal deficit at 3.2% or below, it could have been positive for the market, but the target market of 3.5% is disappointing.
In the event of rising inflation by the announcement of 1.5 times the MSP cost, there may also be consider raising rates in the meeting of RBI monetary policy.
Bharti Airtel to Invest 2649 Crores in SingTel:
Bharti Airtel shares have risen more than 4.50 per cent on BSE on Monday. However the stock was open with a drop of 0.90 percent. But after the initial decline, the stock swift and the stock on the BSE rose by 4.62 per cent to Rs 441.30.
Midcap-Smallcap Index Breaks More than 2%:
Largecap stocks are also seen in the mid-caps and smallcap stocks. The BSE Mid-Cap Index has broken 2.33%. Mid-sized shares were down 10% in Vikramangi, 6.51% in RCom, 5.40% in Adani Enterprises, 5.16% in L & T Finance Holdings and 4.74% in Adani Power.
At the same time, the BSE’s Smallcap Index dropped by 2.78%.
Rupee opens with 14 paise weakness
The first trading day of the week coincided with a massive decline in rupees. Rupee dropped 14 paise to 64.20 against the dollar. On Friday there was a weakness in rupee. Rupee was down 4 paise to 64.06 against the dollar. At the same time, the beginning of the rupee against dollar was, LTCG Tax Impact on Market today: 500 Points After Break, Sensex, Nifty above 10650, also with weakness. Rupee was 10 paise lower at 64.12 compared to the dollar.