(Original title: Just dive!)
Just now, the Indian stock market experienced a shock!Kanpur Investment
According to the latest news, India will increase the trading tax of stocks and derivatives to subsidize the speculative boom of the country’s $ 5 trillion stock market.After the news was released, the Indian stock market dived in a straight line. The Indian SenseX30 index once fell 1.5%. The Indian Nifty small stock index once fell more than 5%, and the medium -sized stock index fell more than 3%.
Prior to this, the Indian stock market was soaring all the way. From 2016 to 2023, the Indian Sensex30 Index rose eight consecutive years.Since 2024, the index has continued to go cattle and refreshed a record high again and again. Since early 2024, the Indian Sensex30 Index has risen by 10%.Pune Stock
Improve the trading tax of stocks and derivatives
On the afternoon of July 23, Beijing time, India will increase the trading tax of stocks and derivatives.On the same day, the Indian Minister of Finance Nirmala Sitharaman stated in a budget speech that the Indian government has increased the equity investment tax rate of less than one year from 15%to 20%, and the stock tax rate of more than 12 months has increased from 10%to 10%to12.5%.
The Indian government will also increase the tax of stock derivatives.In terms of futures transactions, securities trading taxes have increased from 0.0125%to 0.02%, and in terms of options, from 0.0625%to 0.1%.
After the above news was released, the Indian stock market fell straight.The Indian Sensex30 Index once fell 1.5%, the Indian Nifty Small Stock Index once fell more than 5%, and the medium -sized stock index fell more than 3%.By the time that the Indian reporter’s publication, the Indian Sensex30 index narrowed to 0.70%.
Tridep Bhattacharya, chief investment officer of Edelweiss Mutual Fund, said taxation changes are not good for the stock market.Bhattacharya said: "The increasing tax increase is not large, but it will help bring rationality for the prosperity of time -powered transactions, and will improve investment behavior. Increase in capital income will promote investors for long -term investment."
Reuters said that since the low point of the new crown epidemic in March 2020, Indian stock indexes have risen more than 200%, mainly due to the influx of retail traders in the derivative market.The share of retail investors in derivatives has soared from 2%in 2018 to 41%of this year.Data show that in May, the nominal value of derivatives traded in India a monthly high value reached 95.54 trillion rupees (US $ 11.360 trillion).This prompted market regulatory agencies to warn the risks of futures and options transactions.Guoabong Stock
NANGIA Andersen Tax Company partner Sunil Gidwani said that the tax increase of futures and options is in line with the government’s concerns in economic surveys, and the concerns of market regulatory agencies to increase speculative transactions.
Decrease gold and silver import tariffs
The Indian government announced on Tuesday that it plans to reduce the import tariffs of gold and silver from 15%to 6%.Industry insiders said that this move may boost retail demand and help curb smuggling activities in the world’s second largest gold consumer country.
The increase in gold demand in India may increase global gold prices, although this may expand India’s trade deficit and put pressure on the poor rupees.Global gold prices have reached a record high this year.
Sitharaman, Minister of Finance, said in a budget speech on Tuesday: "In order to increase the domestic added value of gold and precious metal jewelry, I recommend reducing the tariffs of gold and silver to 6%."
She also announced the exemption of import tariffs on 25 key minerals including lithium.India has been exploring methods to ensure lithium supplyLucknow Investment. Lithium is the key raw material for making electric vehicle batteries.
In addition, the Indian budget proposed to reduce the basic tariffs on mobile phones and chargers from 20%to 15%.This will directly benefit Apple. Although the local output increases, Apple still exports its high -end smartphone to the country.The market research agency Counterpoint Research said that India’s 5%reduction in mobile phone import tax will bring Apple an annual income of 35 million to 50 million US dollars.
In addition, in order to stimulate consumption, India will reduce the income tax rate of some citizens.Sitharaman said in a budget speech that, according to the revised structure, people with an annual income between 300,000 and 700,000 rupees will now enjoy a 5%tax rate and relax the upper limit of up to 600,000 rupees.
Decline the fiscal deficit goal
Sitharaman, Minister of Finance, also said that the Indian government plans to borrow a fiscal year as of March 2025.14.01 trillion rupees ($ 168 billion).This is slightly lower than the estimated 14.1 trillion rupees in Bloomberg’s investigation.
The Indian government also proposes that the fiscal deficit will be reduced to 4.9%of the GDP, while the temporary expenditure is planned to be 5.1%.This is the government’s first budget after winning the third term in the election last month.
Sitharaman said that the government’s goal is to reduce the fiscal deficit to less than 4.5%next year.From 2026 to 2027, the government will strive to maintain a fiscal deficit, which will make the proportion of central government debt in GDP decline.
After the Minister of Finance of India announced a moderate reduction in borrowing, the price of Indian bonds fell.PUNEET PAL, the fixed income director of PGIM India, said: "Although the fiscal deficit fell to 4.90%, the borrowing number has not changed much, so the yield has increased." The 10 -year Treasury yield rose 2 basis points to 6.98%The return rate of 5 -year Treasury bonds rose 1 basis point to 6.94%.
"Karur Vysya Bank’s financial director VRC Reddy said:" Since some investors expect a greater reduction, some position adjustments are subconscious. The overall budget is positive and prioritize financial prudential. It is expected that the yield on the benchmark bond will beFall to 6.90%, and the upper limit is 7.00%.
Vijay Sharma, senior executive vice president of PNB GILTS, said: "Long -term return may have some selling pressures, and short -term yields may be alleviated. Despite this, the yield on the benchmark bonds may still reach 7.02%."
In recent months, as Indian sovereign bonds have been included in the JP Morgan Chase emerging market index, the inflow of foreign funds has accelerated, and Indian bond prices have risen.Since its announcement in September last year, foreigners have bought Indian bonds worth about $ 12 billion.
Responsible editor: Yang Yucheng
Jaipur Stock