Monday, February 29, 2016
Hike in STT for options hit sentiments hard
Shreyash Devalkar, Fund Manager - Equities, BNP Paribas Mutual Fund
Markets traded along expected lines on budget day, witnessing heightened volatility as Mr. Jaitley, the Union Finance minister unveiled budget 2016-17. Market sentiment was hit adversely in early afternoon trade when the finance minister raised the Securities Transaction Tax (STT) in case of options to 0.05% from 0.017% and said that the government is committed to implementing the General Anti Avoidance Rules (GAAR) from 1st April, 2017. Even though markets recovered momentum to temporarily trade in the positive zone post the budget announcement, they finally closed the day in the red with losses of more than 0.5%. Sectoral indices on the National Stock Exchange (NSE) were mixed with banking, metals and financial services trading in the green and auto, IT and energy trading in the red.

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