'India's high growth will help soften LTCG blow'
Business Standard|July 29, 2024
With the two major events - general elections and the Budget - now over, the equity market trajectory from here on out will largely depend on the earnings growth momentum, final monsoon reading, interest rates, and upcoming US and state elections, says TAHER BADSHAH, chief investment officer, Invesco Mutual Fund. In conversation with Abhishek Kumar, Badshah says that the hike in capital gains taxation is an adverse development, but given the high growth trajectory of domestic equities, it shouldn't be a major worry. Edited excerpts:
Abhishek Kumar
'India's high growth will help soften LTCG blow'

From an equity standpoint, what stood out for you in the Budget?

Through the Budget, the government has reaffirmed its support for the investment cycle by increasing the allocation towards capital expenditure by 17 per cent. This is in line with market expectations. This time around, they have also tried to boost consumption through new initiatives without taking a populist route.

Another notable aspect was the tax rationalisation and the planned comprehensive review of the tax code. The hike in capital gains taxation is an adverse development for the equity market. However, given that the market can compound somewhere between 15 per cent and 17 per cent at a broader level over the next few years, the roughly 20 per cent increase in long-term capital gains taxation should not be a major worry for investors.

Now that the elections and Budget are out of the way, what factors will dictate the market's direction?

While the medium-to-long-term view of India remains positive, there can be some short-term hiccups depending on how earnings manifest.

Esta historia es de la edición July 29, 2024 de Business Standard.

Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.

Esta historia es de la edición July 29, 2024 de Business Standard.

Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.

MÁS HISTORIAS DE BUSINESS STANDARDVer todo
Supreme Industries stock slips on weak Q2 showing
Business Standard

Supreme Industries stock slips on weak Q2 showing

Brokerages cut earnings estimates after firm disappointed the Street

time-read
2 minutos  |
November 05, 2024
Business Standard

Dabur stock fall may provide entry to long-term investors

Dabur's performance in the July-September quarter of the current financial year (Q2FY25) was weak but in line with consensus. Consolidated revenue declined 5 per cent year-on-year (Y-o-Y) due to a temporary adjustment in General Trade (GT) inventory.

time-read
2 minutos  |
November 05, 2024
Business Standard

Capital markets' boom drives NSE Q2 PAT up 57% at ₹3.14K crore

The National Stock Exchange (NSE) reported a 57 per cent year-on-year (Y-o-Y) jump in consolidated net profit to ₹3,137 crore during the quarter ended September 2024 (Q2 FY25) amid a boom in the capital markets.

time-read
1 min  |
November 05, 2024
Business Standard

Sebi directs Embassy Reit to suspend CEO Aravind Maiya

The Securities and Exchange Board of India (Sebi) on Monday directed Embassy Office Parks Management Services, manager to the Embassy Real Estate Investment Trust (Reit), to suspend its chief executive officer Aravind Maiya for lapses in the \"fit and proper\" criteria.

time-read
1 min  |
November 05, 2024
Business Standard

Quant MF expects market correction to pave the way for risk-on phase

The recent downturn in the equity market may see a reversal once the US elections are over, according to Quant Mutual Fund, which emphasizes that the last month's correction should be seen as an opportunity to build more resilient and rewarding portfolios.

time-read
1 min  |
November 05, 2024
Mid, smallcap bounceback may be a distant dream
Business Standard

Mid, smallcap bounceback may be a distant dream

Analysts believe markets lack positive triggers for an immediate turnaround amid looming US polls

time-read
2 minutos  |
November 05, 2024
Business Standard

Sebi allows MFs to invest in overseas schemes with India exposure

The Securities and Exchange Board of India (Sebi) has allowed mutual funds (MFs) to invest in overseas funds and unit trusts (UTs) that have up to 25 per cent exposure to Indian equities.

time-read
1 min  |
November 05, 2024
Business Standard

Worst not over yet? Mkt selloff may continue amid headwinds

Technical charts suggest Sensex can slide to 72,000 levels in the worst-case scenario

time-read
3 minutos  |
November 05, 2024
Business Standard

New York Times beats estimates as digital subscriber count grows

New York Times Co reported third-quarter earnings that beat analysts' expectations, as the company saw an increase in its subscriber count in the months leading up to the 2024 Presidential Election.

time-read
1 min  |
November 05, 2024
Business Standard

Pak blames 'winds from India' as Lahore AQI hits record high

Ministers in Pakistan's Punjab province on Monday blamed winds from India for worsening the smog, urging the Indian authorities to take the matter seriously, after the air quality index (AQI) in Lahore hit a record high over the weekend.

time-read
1 min  |
November 05, 2024