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With Finance Minister Nirmala Sitharaman proposing LTCG and STCG tax hikes, the rupee fell to 83.69/$1, breaking its previous low, and opened at 83.64/$1. Stocks dropped 0.8%, while Anil Bhansali suggested possible RBI intervention.

We started with no expectations in terms of changes in capital gains and therefore, this small increase in capital gains tax is definitely not welcome. And the other thing is, there are some uncertainties regarding the buyback tax. Obviously, STT has got increased. I am hoping that it is only for speculative transactions, not for delivery transactions, because the whole purpose of STT was in lieu of capital gains tax.

The 10-year yield rose two basis points to 6.98%, while the 5-year yield was up one basis point at 6.94%. The rupee hit a new all-time low of 83.6925 per dollar.

Axis Bank’s Q1 results, to be released on July 24, may show 11% NII growth, 12% net profit increase, and 15% loan growth. NIMs are likely to drop by 6-8 bps. Analysts foresee Rs 4,500 crore PSL slippages and cost pressures affecting NII growth and ratios. March quarter profit was Rs 7,130 crore.

Promoters held 51.46 per cent stake in the company as of 30-Jun-2024, while FII and DII ownership stood at 11.2 per cent and 5.16 per cent, respectively.

A total of 11,794 shares changed hands on the counter till 01:39PM (IST)

I clearly believe that this budget focuses a lot on the real economy and that is something which probably yet is getting kind of ignored in context of some of the tax hikes.

The stock traded at a P/E multiple of 67.29, while the price-to-book value ratio stood at 11.55.

While taxation of tobacco is primarily under the purview of the GST Council, the central government also levies NCCD on cigarettes, subject to changes in the Budget. Of late, the taxation regime has been stable aiding both volume growth for the legal cigarette industry and tax collections, BofA said.

Vijay Kedia, MD of Kedia Securities, discussed the 12.5% LTCG tax, SEBI’s speculation curbing, and hike in STT . He finds these changes reasonable and expects market corrections. The initial reaction settled quickly, suggesting market acceptance. Short-term holdings minimize the impact, while Budget clarity and ongoing corrections are expected. He says these were bound to come.