Skip to main content

Budget 2020: Stock market causes heavy losses to investors

-


Budget 2020: Stock market causes heavy losses to investors

On Saturday, Finance Minister Nirmala Sitharaman presented the Budget 2020, after which the stock market collapsed and investors lost Rs 4 lakh crore. The Bombay Stock Exchange’s flagship index Sensex closed at 39,735.53, down 987.96 points, or 2.43 per cent. At the same time, the National Stock Exchange’s Nifty closed at 11,643.80, after losing 318.30 points, or 2.66 percent. This is the biggest decline of a decade. The stock market was not happy with the general budget.
Let’s know five reasons, because of which this market fell drastically
Confusion about tax slab
For the convenience of common taxpayers, the Finance Minister has announced a new income tax slab. According to this, if a taxpayer files his return according to the new slab, then he will benefit greatly. However, if the taxpayer uses exemption options like section 80C, 80D, 80G and 80E and standard deduction, then there will be no benefit in tax. According to analysts, the problems between the old and the new tax system came to light.
No declaration made on LTCG tax
Apart from this, it was also expected to abolish the Long Term Capital Gains (LTCG) tax from Budget 2020. Investors were hopeful that Nirmala Sitharaman would end it, or make some other changes to it, which would be in their interest. But no such announcement has been made, which angered investors and caused a market crash.
No area has received any special gift
According to the Economic Times news, Finance Minister Nirmala Sitharaman has not made any specific announcement in the budget for any particular area. Earlier, it was hoped that the government would encourage consumption to improve the economy. But Vinod Nair, Research Head, Geojit Financial Services, said that the government has not met expectations, due to which the market fell.
Dividend distribution tax ended
Explain that Nirmala Sitharaman announced the abolition of Dividend Distribution Tax (DDT) in the budget. This move of the government will increase the burden of Rs 25,000 crore on the government exchequer. Analysts say that this is not good news for investors. This is because the end of the dividend distribution tax will add to the income of the dividend taxpayer.
Enormous objective for disinvestment
During the financial limit, the Finance Minister likewise made a major declaration about disinvestment. Nirmala Sitharaman declared that the legislature would sell its stake in Life Corporation of India (LIC). Introductory open issue (IPO) will be brought for this. Likewise, the administration proposed to sell the staying capital of IDBI Bank through the Stock Exchange. Clarify that the administration has set a disinvestment focus of Rs 2.10 lakh crore for FY 2021. This objective is very huge.
You can contact us for more Information – 
SP Chandel  : 9340546337
Location: India

Comments

Post a Comment

Popular posts from this blog

BSE Oil and Gas file trades level; HPCL, BPCL stock fail to meet expectations

-
Image
BSE Oil and Gas file trades level; HPCL, BPCL stock fail to meet expectations  Portions of IGL likewise fell 1% in the Oil and Gas list. On the other side, GSPL, ONGC, GAIL, Petronet and Castrol were up.  The BSE Oil and Gas file is exchanging level the morning trade on Friday. The list went under weight in the early morning trade even as worldwide oil costs hit 3-month high tailing US airstrike that killed key Iranian and Iraqi military staff, raising concerns with respect to heightening Middle East pressures may upset oil supplies.  The oil costs on Wednesday were additionally lifted by China's national bank saying it was cutting the measure of money that banks must hold for possible later use, discharging around 800 billion yuan (USD 115 billion) in assets to support the easing back Chinese economy.  Portions of OMC slipped drove by BPCL, HPCL and IOC, which were down in the scope of 1-2% individually.  Portions of IGL additionally fell 1% in the Oil an
Read more

Sensex sees some recovery

-
Image
Sensex sees some recuperation in the wake of falling almost 400 focuses  The rupee likewise fell against the US dollar today  Some purchasing was seen in select IT stocks, RIL and ICICI Bank  Indian markets recouped from lows in the wake of falling pointedly in early trade. Sensex was down around 140 focuses to 40,728. In early exchange, Sensex had drooped about 400 focuses following a decrease in worldwide markets after Iran terminated rockets at different bases lodging US troops in Iraq. The more extensive Nifty was drifting around 12,000. Worldwide monetary markets have been nervous about the probability of further acceleration in US-Iranian clash and disturbance of oil supplies since a week ago's murdering of General Qassem Soleimani in a US ramble in Baghdad.  Back in India, the legislature on Tuesday discharged first development assessments of GDP numbers for the current money related year (2019-20) pegging the development at 5%.  "The FY 20 G
Read more
-
Image
2020 Russia–Saudi Arabia oil price war According to : -  wikipedia.org On 8 March 2020,  Saudi Arabia  initiated a  price war  with  Russia , triggering a major fall in the  price of oil , with US oil prices falling by 34%,  crude oil  falling by 26%, and  brent oil  falling by 24%.  The price war was triggered by a breakup in dialogue between the  Organization of the Petroleum Exporting Countries  and Russia over proposed oil production cuts in the midst of the  2019–20 coronavirus pandemic . Oil prices had already fallen 30% since the start of the year due to a drop in demand.  The price war is one of the major causes of the currently ongoing  global stock market crash . Beginning in 2014, U.S.  shale oil  production increased its market share; as other producers continued producing oil, prices crashed from above $114 per barrel in 2014 to about $27 in 2016. In September 2016, Saudi Arabia and Russia agreed to cooperate in managing the price of oil, creating an infor
Read more