Tax surcharge on LTCG (long-term capital gain) and STCG(Short term capital gain) to FPI and domestic investors has been rolled out, i.e., they have restored the pre-budget position. An announcement was made by FM Nirmala Sitharaman on 23 August 2019 in a press conference and said India’s growth is comfortably higher than others.
The market was also keeping an eye on this conference since the market start-up early this morning. Nifty ends above 10800, Sensex gains 228 pts on stimulus hopes from FM meet.
Here are some stats of the days which will make you believe in upcoming strong market growth
Intraday Nifty chart of 23rd August 2019
- The market started in the morning from Nifty at 10751 to its lowest at 10640 almost 1% down in 30 minutes span.
- At the closing time, Nifty rose to 10829 so technically 2% up from the lowest number intraday.
This is an observation of the market on 23 august 2019.
So Why did the Nifty jump to almost 2% high?
It was majorly a sentimental flick. The market reacted to the expectation of FM’s conference outcome of rollback of surcharge on FPIs and some other reforms to boost the economy.
Not just Nifty other Indices reacted the same
Nifty Midcap 100 ended 1.18% high
Nifty small cap 100 ended 0.80% high
Conclusion to the above study
The market is correcting downwards continuously and gained speed after the Union budget 2019.
Now as per today’s observation we can clearly see that a sentimental flick is taking the market upwards, investors are eagerly waiting to put money in the market after a long correction and FM gave them the reason to hit hard. India is still an attractive destination to invest in the long term despite some small factors in the short term.
Now markets will react on Monday as the conference was after the closing. Most likely expectations of investors are fulfilled we can see a good positive number on Monday.
Be a wise investor – Connect