New provisions in the Budget continue to wreck havoc for the equities market.
Though proposals related to the capital markets took up a chunk of airtime in Nirmala Sitharaman’s maiden budget speech, the stock markets were not particularly thrilled at the Union Budget for 2019-20.
Market participants were expecting some dose of revival for the economy, which lost the steam of growth and wished that the Finance Minister would present the budget, which will not only kickstart the slowing economy but will also give some direction to lost financial markets.
Instead, Sitharaman’s maiden budget not only lacked adequate incentives, but certain proposals absolutely failed to strike a chord. Schemes such as Super Rich Tax, hike in public shareholding limits for listed companies and ambitious disinvestment target set for the Financial Year 2019-2020 (FY20) proved to be detrimental for the market and has caused irreparable damage to market sentiments.
This story was penned on Friday, July 19, when the benchmark indices closed with second most heavy losses in the calendar year till date. The Bombay Stock Exchange (BSE)’s S&P Sensex dropped by 560 points while the National Stock Exchange (NSE)’s Nifty50 shed 178 points to close respectively at 38,337 and 11,419 points.
Commenting on 2019’s second largest fall in the benchmark indices, Arun Thukral, MD and CEO, Axis Securities said, “The correction was in response to a combination of the surcharge on the Foreign Portfolio Investors (FPI), tepid results by a couple of companies and rising slowdown concerns. The markets are expected to be volatile in the near term on account of eclectic events such as US Fed policy meeting scheduled on July 30 or 31, the progress of monsoon and results of various companies.
This story is from the August 2019 edition of Outlook Money.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the August 2019 edition of Outlook Money.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber? Sign In
The Future Of Credit Card Usage
Credit card usage is increasing in India, but it's prudent to manage credit wisely
Liquidity Coverage Ratio Framework
At the recent monetary policy committee meeting in April 2024, Reserve Bank of India (RBI) Governor Shaktikanta Das proposed changes in the liquidity coverage ratio (LCR) framework to successfully meet liquidity risk.
STRATEGIES TO HELP YOU STAY ABROAD AFTER STUDIES
More Indians are now going abroad for higher studies with plans to stay and work. But living costs, the lack of job opportunities and the burden of education loans could often pose a problem. Assess the opportunities and be practical before making such a decision
FROM SAVINGS TO SECURITY: HOW INDIANS ARE PREPARING FOR THEIR SUNSET YEARS
The Outlook Money - Toluna Retirement Survey conducted in December-end 2023 threw light on how Indians plan and save for retirement. A growing number of Indians now understand the necessity of retirement planning, and want to enjoy their retirement years with kith and kin
Here's How To Install A Solar Panel
It is the season of solar panel subsidy announcements. Right after the Centre launched the PM Surya Ghar Muft Bijli Yojana to offer subsidies to 10 million households to set up rooftop solar systems, the Delhi government has announced an extra capital subsidy of ₹2,000 per kilowatt (kW) to Delhi residents for rooftop solar panel installation. Both governments have caps on subsidies. Some other states, too, offer incentives on the use of solar rooftop panels.
Master Your Own Money Choices
Instead of judging others, have clarity about what you want from your money, where you want to spend it and how you want to feel about it
3 THINGS TO CHECK BEFORE YOU EXIT YOUR POLICY
If you think that the insurance policy you bought doesn't quite align with your goals, you may surrender it. But that comes at a cost. Here's why you should do the calculations
Small And Mid Cap Rally: Be Wary
You may include small- and mid-caps in your portfolio for diversification, but understand that they may not replicate last year's returns and are relatively more volatile
HOW TO MAKE SENSE OF THE GOLD RUSH?
The precious metal has been on an upward rally for the last couple of years due to factors as diverse as geopolitical conflicts, bulk buying by central banks, and hope of rate cuts, of late. The key, therefore, is to invest in gold in a staggered manner
'People Are Normal. They Are Sometimes Ignorant But They Are Not Stupid'
Meir Statman, the Glenn Klimek Professor of Finance, Leavey School of Business, Santa Clara University, California, is the second generation of behavioural finance experts who refused to label people as \"irrational\" and instead called them \"normal\". In his latest book, A Wealth of Well-Being: A Holistic Approach to Behavioral Finance, he expands the circle of finance to include life well-being and shows how they are inextricably intertwined. As part of an interview series, 'Wealth Wizards: Money Maestros in conversation with Nidhi Sinha, Editor, Outlook Money', Statman spoke about his research, and explained concepts through anecdotes that can help you take balanced decisions. Edited excerpts:
