Mumbai, Feb 1 (PTI) With tax on long term capital

gains (LTCG) on equities left untouched by the Government,

experts today welcomed the Budget, saying this decision will

calm the stock market nerves and boost investor participation.

There was speculation that the Government would raise

tax on long term capital gains on securities in the Union

Budget. The market had got worried after Prime Minister

Narendra Modi in December hinted on increasing taxes on

capital markets and the need for all sections, including

market players, to contribute to the national exchequer.

“No bad news on long term capital gains tax is relief

for equity investors. Overall, Union Budget is positive for

economy in general and equity markets in particular,” said

Sharekhan research head Gaurav Dua.

“The Government has presented a reasonably positive

Budget, given the constraints, from equity markets

perspective. No mention of changes in capital gains for listed

securities and concessions to FPIs will soothe market nerves,”

Reliance Securities research (head) Rakesh Tarway said.

Echoing similar sentiments, HDFC Securities MD & CEO

Dhiraj Relli hailed the Government’s decision not to tinker

with the equity capital gains tax regime. “The markets are

rejoicing as they can continue to enjoy the fruits of

investment,” he said.

According to TradingBells COO Parth Nyati, IPO for

public sector undertakings like IRCTC, IRFC and IRCON is a

pleasant surprise and would ensure more retail participation.

“Long term capital gain tax on equity markets remained

unchanged which will further boost investor participation.

Service Tax and STT also remained unchanged,” Nyati said.

Metropolitan Stock Exchange of India (MSEI) COO

Abhijit Chakraborty said FPIs being exempted from indirect

transfer provision address a key concern of foreign investors.

“Listing of IRCTC and IRFC shall be significant

catalyst for capital markets. More PSU ETFs shall aid the

growth of this emerging sector in the market,” he added.

Observing that the market speculation around LTCG,

corporate tax rate cut across various forums was not mentioned

in any form in the Budget, Systematix Shares & Stocks MD

Nikhil Khandelwal said the Budget had more ‘ears on the

ground’ than ‘ears on the market expectations’.

Kotak Securities senior vice president (PCG Research

Dipen Shah lauded the absence of any changes in capital gains

tax, adding apprehensions related to it have been erased.

“Focus on markets will now shift to the global factors

and the remaining quarterly results,” he added. (MORE)

This is published unedited from the PTI feed.