The recalibration of Securities Transaction Tax (STT) aims to promote long-term equity participation, enhancing market liquidity, stated Sundararaman Ramamurthy, MD and CEO of BSE. This move in the Union Budget underlines India’s resilience as an attractive investment hub amidst global uncertainties. The budget aligns with the vision of Viksit Bharat, emphasizing capital formation, fiscal discipline, and growth pillars like infrastructure and SMEs.
Raamdeo Agrawal, Chairman of Motilal Oswal Financial Services Ltd, hailed the budget as a strategic move for India’s digital future. However, he cautioned about the potential impact of STT changes on capital markets, foreseeing challenges for high-frequency and arbitrage trades. Despite short-term concerns, the budget’s fiscal deficit and significant capital expenditure are seen as positive for India’s long-term growth story.
Anand James, Chief Market Strategist at Geojit Investments Limited, viewed the STT adjustment as beneficial for equity due to increased costs in option trades. While acknowledging potential short-term equity segment adjustments, James highlighted the uncertainty regarding the impact on speculative interest in derivatives, particularly options trading.
