Bonjour, new guests from small-town India
Puneet Dhawan of Accor is brimming with ideas on ways to revive the hospitality sector
The market have reacted positively to the Budget measures and global sentiments - PTI
The stock market has been exuberant since Budget day, with the Sensex reclaiming the 50,000 points mark and the Nifty 50 racing past the 15,000 points mark before retracing its steps. The upswing last week may not be wholly related to the Budget, though. The market has been closely entwined with its global counterparts over the past year and last week’s movement should be seen in the context of a global rally caused by hopes of another tranche of stimulus amounting to $1.9 trillion in the US, and increasing optimism driven by the progress in Covid vaccination. That said, domestic players were quite pleased with the Budget due to three main reasons. One, contrary to expectations, the Finance Minister did not throw any negative surprises on investors such as a hike in securities transaction tax, capital gains tax and so on. Two, the Centre’s intent to do whatever is takes to boost growth, even at the cost of running a large fiscal deficit and expanding the borrowing, seems to have pleased the market. Three, the Budget addressed some of the issues that foreign portfolio investors have been complaining about.
FPIs form the largest category of active investors in the Indian market and it is welcome that the Budget tried to assuage their concerns. FPIs had been irked at the over 20 per cent TDS on dividends paid to them, while according to tax treaties, the deduction should have been much lower. By allowing companies to withhold tax on dividends at treaty rates, ranging from 5 to 15 per cent depending on the country of origin, the Budget has addressed one of the major complaint of FPIs. The Budget has also made it easier for foreign funds to move from other jurisdictions to the GIFT City IFSC, without having to pay capital gains tax on notional profits on the books. Relaxing of some of the conditions set out for sovereign funds investing in infrastructure sector will hopefully see more foreign funds moving in to this segment. Similarly, the proposal to allow foreign investors into REITs and InVITs will help the infrastructure segment garner some much-needed funding from overseas.
With the Budget now behind, investors’ attention will shift towards corporate earnings, that have been reflecting the relative resilience of the larger companies in weathering the pandemic impact. The progress of Covid vaccination along with decline in number of active cases is instilling confidence among investors regarding consumption returning to pre-Covid levels soon. The government’s large spending on capex along with higher commodity prices is going to see demand improving for many listed companies. While valuation is getting pricey in many pockets and bouts of volatility driven by global factors cannot be ruled out, the domestic conditions for equity investors have been rendered largely positive by the Budget. The renewed bullish sentiment is not surprising.
Puneet Dhawan of Accor is brimming with ideas on ways to revive the hospitality sector
Citroen’s first vehicle sports a novel design and European interiors. It is also meant to be as comfortable as ...
The pandemic is only the tip of the iceberg that the country’s cash-poor airlines — both regional and national ...
The government is yet to specify the framework of its recently announced old vehicle scrappage policy
With initial public offerings galore, we give you a cheat sheet to score some good grades
Biggest risk in selling funds in a rising scenario is exiting early and missing out on further gains
Go for a standard vector-borne diseases policy if you don’t have a regular health plan
No credit risk is an attraction, but note the nuances
After facing severe droughts for several years, farmers in western Maharashtra have turned the corner through ...
A toast to a traditional drip irrigation system still going strong in the Northeast
Raza Mir’s ‘Murder at the Mushaira’ works well as a historical novel that captures the sunset years of the ...
If you see garbage lying on the streets, remove it, says a dedicated plogger on a clean-up drive
Its name is the starting point of a brand’s journey and can make a big difference in the success sweepstakes
Sober spirits are the in thing
A peek into where ad spends went last year and where they are headed tomorrow
Can Swiggy Instamart disrupt the ecommerce groceries space, currently ruled by the Amazons and Big Baskets? ...
Three years after its inception, compliance with GST procedures remains a headache for exporters, job workers ...
Corporate social responsibility (CSR) initiatives of companies are altering the prospects for wooden toys of ...
Aequs Aerospace to create space for large-scale manufacture of toys at Koppal
And it has every reason to smile. Covid-19 has triggered a consumer shift towards branded products as ...