The fifth budget in a row for FM, the last full budget before the 2024 elections and keeping in view nine state elections this year, the budget has something for everyone. On the one hand tax rebate has been increased from three lahks to seven lahks and a reduction in the rate of taxes for all other slabs. By reducing taxes under the new regime, the government has put more money in the pockets of almost ninety per cent of […]
Godfrey Phillips India climbed 1-3 per cent.
“There is nothing on ITC till now. We had highlighted the low probability of any (tax) hike. Stock could re-rate in the near term as stock had corrected in the past two weeks,” said Avneesh Roy, lead analyst with Edelweiss Securities.
Heading into the Budget, some market participants had expected the government to raise taxes on cigarettes in order to boost its revenues by means of a Covid-19 cess or an increase in the National Calamity Contingency Fund.
It is no surprise that the stock had remained weak in January ahead of the Budget announcement, after staging a 26 per cent rally in November and December. Traders had sharply increased their short positions in the February futures contract of ITC, suggesting that they fear a tax hike would come in the Budget.