Sell-off in equity markets is due to global shakeup says Hasmukh Adhia
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New Delhi, February 7: Finance secretary Hasmukh Adhia said the sell-off in India's equity markets is due to weak global sentiment and not because of the long-term capital gains tax (LTCG) announced in the budget.
Addressing the post budget session of PHD Chamber, Adhia said global meltdown in stock exchange came at a very wrong time. He said after declaring long term capital gain tax in budget, market was okay and there was only minimal disruption on that day.
The Finance secretary said what happened on next few days was mainly because of global shakeup. He said inspite of Levy of LTCG on shares, Foreign Institutional Investor- FIIs are still net buyers n not net sellers in the stock market. He said thus this decision has nott actually adversely affected the market that much as is being projected.
On corporate tax, Adhia said new companies plunging into manufacturing, already have the benefit of lower rate of corporate tax since the last two years.