Budget 2018 Market Impact: Most newly listed stocks escape unhurt

Budget 2018 Market Impact - Finance Minister Arun Jaitley on Thursday presented Union Budget 2018-19 in Parliament. This was his fifth and the Narendra Modi government’s last full Budget before heading into the 2019 general elections. Some of the market-related measured announced by Jaitley in his Budget impacted the Indian equity markets. While the stocks in the NSE’s Nifty50 and Nifty Midcap50 indices took more hit, the newly listed ones seemed relatively cushioned.

This EY analysis looks at the announcements in Finance Minister Arun Jaitley’s Union Budget 2018-19 that might have impacted each of the newly listed stocks:

HDFC Standard Life Insurance Company Limited
·                Increase in Education cess from 3% to 4%
·                Tax on Long Term Capital Gains exceeding Rs. 1 lakh at the rate of 10%, without allowing indexation
·                80JJAA provisions rationalized to give benefit to new employees subject to conditions
·                Transaction in respect of trading of agricultural commodity on recognized stock exchange to be treated as non – speculative transaction
·                Amendment in the Indian Stamp Act with respect to stamp duty regime on financial securities transaction.
·                Retrospective amendment proposed to exempt services by Naval Group Insurance Fund by way of life insurance to personnel of coast guard under Central Government scheme from 10 September 2004 to 30 June 2017