This blog is fully dedicated for Indian share traders. This blog could help you view World market watch, BSE/NSE Spots in single page.

Bidvertiser

Your Ad Here

Brokers want Government to suspend STT to boost Markets

Faced with increased volatility and dwindling volumes on bourses, stock brokers are suggesting suspension of the Securities Transaction Tax (STT) the collection for which has shrunk by more than 15 per cent during the first eight months of the current financial year.

"The government should at least suspend securities transaction tax for a year. This will encourage market participants to take their position aggressively. The sentiment of the market will improve as the volume will increase," Bonanza Portfolio President Research P K Agarwal said.

The STT, levied on share transactions at 0.125 per cent of the total value, declined to Rs 4,156 crore during April-November 2008, down 15.42 per cent during the corresponding period last year, mainly on account of reduced capitalisation in the India securities market.

Indian stock markets have suffered immensely on account of withdrawal of funds by the Foreign Institutional Investors (FIIs) with Bombay Stock Exchange benchmark Sensex declining from a high of over 21,000 to less than 8,000 points.

The turmoil in the market had an adverse impact on the turnover from the national stock exchange. It reduced to Rs 1,73,123 crore in November from Rs 4,47,138 crore in January, when the market was at its peak.

The total equity turnover from the Bombay Stock Exchange also declined to Rs 63,571.11 crore in November from Rs 1,85,622.78 crore in January.

"Removal of securities transaction tax will be a very good option but even if the government goes back to the earlier position (when it was used for tax deduction rather than as expense at the current level), it will be a big boost to the market," SMC Global Securities VP and head research Rajesh Jain said.

Courtesy: business-standard.com

Disclaimer:

The information in this publication is provided by www.shyamshare.blogspot.com is intended for use for Readers & Traders . Every effort is made to provide accurate information, but www.shyamshare.blogspot.com cannot guarantee the accuracy of the information or of the market analysis. This is a newsletter and is for informational purposes only. It is not a solicitation or offer to buy or sell futures. There is a high risk of loss in trading futures. You should not trade with money that you cannot afford to lose. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this newsletter. The past performance of any trading system or methodology is not necessarily indicative of future results.