Thursday February 28, 01:30 PM
Tax rebates slashed... |
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By Equitymaster.com
The finance minister proposal to reduce tax rebates for investing in government securities has come as major disappointment for the markets. If that was not enough, dividend income would now be taxed at the slab rates of individual rather than 10% charged in the hands of mutual funds/ companies.
The BSE Sensex is at 3,593 (down 113 points) and the NSE Nifty is at 1,174 (down 33 points). The rupee is trading at Rs 48.80 per US dollar.
Finance stocks are having a mixed reaction. IDBI (IDBI.BO, news) is up 5.5% on the budget proposal that it would be corporatised and loan tenures would be revised upwards. This would help the institution meet its current liabilities. ICICI (ICIC.BO, news) is down sharply. The institution would find it difficult to mop up further collections through safety bonds in view of budget proposal to remove section 88
benefits to individuals who earn above Rs 0.5 m annually. Other banking stocks are also down. SBI (down 5%), ICICI Bank (ICBK.BO, news) (down 4%), Global Trust Bank (down 9%) are among the major losers.
There is massive selling pressure across most of the sectors. Power stocks are also facing selling pressure. FMCG sector stocks are the only silver lining today with steady prices. PSU stocks are also on the sell mode. BPCL (down 5%), HPCL (down 5%), MTNL (down 9%) are among the major losers.
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