Capital market stocks race ahead of budget in anticipation of a reduction in capital gains tax
In the last Budget, securities transaction tax (STT), long-term capital gains (LTCG) tax and short-term capital gains (STCG) had been raised. The deepest impact, according to industry insiders came from the doubling of STT.
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Capital markets stocks gained between 0.46-3.12 percent in anticipation of a positive announcements from Finance Minister on reducing capital gains tax.
Motilal Oswal Financial Services shares gained 3.12 percent at Rs 657.05 at 10.18 am on the National Stock Exchange. Angel One shares were up 0.46 percent at Rs 2,357. While CAMS and KFintech Technologies shares gained 2.21 and 2.27 percent respectively.
In the last Budget, securities transaction tax (STT), long-term capital gains (LTCG) tax and short-term capital gains (STCG) had been raised. The deepest impact, according to industry insiders came from the doubling of STT.
In their pre-Budget conversations, stock brokers and asset management companies (AMCs) had sought reduced taxation on securities transactions and capital gains, and incentives for technology adoption.
In Budget 2024, the rates on STT on sale of an option in securities was increased from 0.0625 percent to 0.1 percent of the option premium. Meanwhile, STT on sale of a futures contract was increased from 0.0125 percent to 0.02 per cent of the price at which such futures are traded.
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