Budget 2020: Sensex, Nifty drop after FM's speech today
Budget 2020: Finance Minister Nirmala Sitharaman presented the budget today and made some notable allocations to various critical sectors, including infrastructure. She also unveiled new tax slabs. (#BudgetOnZee)
However, the BSE Sensex plummeted 988 points to close below the key 40,000-mark, led by an intense broad-based selloff. Reasons include a global sell-off on pricey oil as well as the Budget for 2020-21 failed to live up to market expectations. (#BudgetOnZee)
Presenting the Union Budget for 2020-21, Finance Minster Nirmala Sitharaman proposed to remove dividend distribution tax on companies, effectively shifting the tax burden to recipients at the applicable rate. She pegged the fiscal deficit at 3.8 per cent in the current fiscal, compared to the earlier target of 3.3 per cent of GDP.
In her second Budget presentation, the finance minister said certain government securities will be open for foreign investors, adding that the Centre plans to increase investment limit for FPIs in corporate bonds from 9 per cent to 15 per cent. (Photo: PTI)
According to Krishna Kumar Karwa, Managing Director - Emkay Global Financial Services, investors are disappointed with no relief on long term capital gains (LTCG) tax and lack of big bang sectoral stimulus.
"The removal of Dividend Distribution Tax seen as a continuation of earlier step of reducing corporate tax is well appreciated and sends the right signals to local and global investors," he added. (Photo: Reuters)