Equity capital gains in personal income to reach up to 15% in FY24: Jefferies
capital gains in the total personal income of individual investors is expected to jump to 12-15% in FY24, according to Jefferies estimates. The brokerage has premised its findings on a four-to-five-fold increase in the number of individuals reporting short- and long-term capital gains in the period between FY19 and FY23.
Jefferies’ head of India research Mahesh Nandurkar, in the latest Greed & Fear report, puts forth his analysis on the personal income tax data, highlighting the jump in capital gains from 4% in FY19 to 11% in FY22 while pegging the the capital gains share at 12-15% in FY24E.
The jump in long-term capital gains (LTCG) and short-term capital gains (STCG) is on account of high market returns and rising retail participation, the report stated.
While Nifty has been on a declining curve on account of weak US economic data, rising fears of recession in the world's largest economy, its returns over the past one year are nearly 28%. Off their highs, returns from the broader markets are even better. While Nifty Midcap 100's 1-year returns stand at 45%, those by Nifty Smallcap 100 are around 53%.
The Greed & Fear Report stated that the recent rise in LTCG and STCG in India did not have any material impact on the domestic stock market was surprising.
The government hiked the LTCG tax from 10% to 12.50% on gains exceeding Rs 1,25,000 while for STCG, tax has been raised to 20% from an earlier 15%.
«The Nifty Index remains only 0.5% below its all-time high reached on Monday while GREED & fear’s India
