Markets for GST rollout, clarity in DTC in budget

Stock markets in February so far have plummeted by over 11 per cent on concerns over high inflation, rising interest rate and, low morale and confidence of the investors due to uncertainty caused by a series of high-profile scams.

Market observers feel that the Dalal Street would benefit if some bold financial reforms are announced in the upcoming budget, due on February 28.

“From a stock market perspective, we would keenly watch for clarity of taxation on long-term under direct tax code (DTC) as any tax on long-term gains could lead to profit-booking before the tax comes into place,” Motilal Oswal Securities Associate Director (Business Strategy and New Initiatives) Manish Shah said.

Budget 2010-2011 had provided for Rs 35,000 crore for 3G and Rs 40,000 crore for disinvestments. The country has raised Rs 1,15,000 crore from the 2G and 3G and is on course to complete the disinvestment target. Market experts feel that the Finance Minister should set another Rs 40,000 crore target from disinvestments in the upcoming budget.

Besides, price-rigging is another issue where the capital market market have suffered after the surfacing of price- rigging cases in many listed companies surfaced. Analysts demand that there should be a mechanism to stop price manipulation on the first day of listing of shares by any company.

“The budget should make the disclosure of all the pledged compulsory. Currently only promoters’ shares are disclosed and non-promoters funded by brokers are being shown in the broker’s name,” CNI Research CMD Kishore P Ostwal said.