The Hindu Business Line : Market players see no impact of STT

THE stock markets have many reasons to cheer from the Union budget proposals such as lowering of corporate taxes, benefits for sectors like sugar and textiles and focus on infrastructure likely to improve the sentiment of stock market.

But the hike in securities transaction tax (STT) has evoked mixed reaction.

Mr Vineet Bhatnagar, Managing Director, Refco Sify Securities, said: "Hike in STT is seen as positive for the stock market. Going forward, there are greater chances that short-term capital gains taxes might be further reduced making stock market transactions free of capital gains taxes."

He said lowering of corporate taxes is seen as positive for the companies and corporates which have deferred tax liability would be benefited out of it.

THE ICICI Direct Chief Executive Officer, Mr Anup Bagchi, said: "There is hike in STT, but the market was expecting this hike". But he said the hike is much lower than the market expectation.

"Overall it is good Budget as it is positive for the stock market," said Ms Deena Mehta, Managing Director, Asit C Mehta Investment Intermediates. However, she said increase in STT was not expected as the volume in the stock market has already come down after the tax was introduced in the last Budget.

Mr Ambarish Baliga, Vice-President, Karvy Stock Broking, said overall the Budget is neutral for the stock market. "The market was waiting for the event (Budget) before making fresh investment further," he said.

The various measures announced by Mr Chidambaram for select sectors such as sugar and textiles are also seen as positive by market players.

They said stock price of companies in these sectors should well in the days to come.

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