Stock market will continue to have long-term growth in India: V Anantha Nageswaran
«Now, whether the short-term capital gains tax, short-term transaction tax increase, will it necessarily act as a disincentive for speculative activity or not, obviously one measure is not adequate and if you are looking for gains in hundreds and 200% because of the embedded leverage in derivative assets, you are not going to be swayed by a small increase in the short-term transaction tax,» says V Anantha Nageswaran, CEA.
Well, you pointed out in the Economic Survey that a lot of experimenting is happening as far as the investment in the stock market is concerned and today, we saw the LTCG and short-term capital gains, the tweak there. What is your thinking as far as, from here on the stock markets or investment in stock markets is concerned as far as this?
V Anantha Nageswaran: Look, I mean, I am not in the prediction business for stock markets.
I think, in general, India's growth prospects look good. The stock markets, therefore, will continue to have their long-term growth in India.
There is no question about it. These moves, as Secretary pointed out very well, they are meant to simplify, they are meant to rationalise and make it easy.
Now, whether the short-term capital gains tax, short-term transaction tax increase, will it necessarily act as a disincentive for speculative activity or not, obviously one measure is not adequate and if you are looking for gains in hundreds and 200% because of the embedded leverage in derivative assets, you are not going to be swayed by a small increase in the short-term transaction tax.
