Union Budget 2015-16 will be a defining moment for both the Indian economy as well as the market. The mood of the market seems to be very positive and IT and pharma companies are likely to well in the near-term. But the focus in the Budget will be on what Finance Minister Arun Jaitley has to announce for the infrastructure sector and what measures will be taken by the government to revive capital expenditure.
MCX is hoping that the commodity transaction tax will be removed in the upcoming Union Budget, according to PK Singhal, Joint Managing Director . In an interview with CNBC-TV18, Singhal says Taiwan is the only other country which levies a CTT.
He says commodity trading volumes have come down significantly since the imposition of CTT, and this is also leading to grey market transactions in which the government gets no revenue at all. Average daily turnover on MCX has fallen from Rs 50,000 crore to Rs 30,000 crore since CTT was introduced, Singhal says.
MCX has regained the market share it lost in the aftermath of the scam at NSEL, Singhal says. He feels the shifting of the Forwards Market Commission to the Finance Ministry from the Consumer Affairs Ministry is a positive step.
Manish Chokhani of Enam Holdings believes the bullrun is definitely here to stay. However, in the short-term, he says the upcoming Budget will be the deciding factor in just how this bullrun unfolds.
Speaking at the Axis Capital Conference titled “India on the move”, he says the sustainability of this bullrun will depend on what moves the government makes in getting India’s economic growth back on track, and just how it brings back investors.
Manish Chokhani said that he expects this government to present a pathbreaking or a bold, pragmatic business growth oriented Budget.
“It is unlikely that we will see an incremental Budget or at least that is the hope at this point in time,” he said. “But we have been disappointed in the past. Let us hope the Finance Minister delivers this time around on the growth promise that he has made.”
The government will yield an additional Rs 20,250 crore this fiscal from the excise duty hiked on petrol and diesel, said Minister of State for Finance Jayant Sinha in a written reply to the Rajya Sabha.
This is the first time the government has stated just how much it stands to gain from the excise duty hike. It has raised the excise duty on petrol and diesel four times since November, a move that prevented consumers from enjoying the full benefit of 60 percent fall in crude prices.
The basic excise duty on branded & unbranded petrol stands at Rs 8.95/litre and Rs 10.10/litre, respectively, Sinha informed Rajya Sabha.