Government Unlikely to Tinker with Capital Gains Tax; Cyclicals to Maintain Market Leadership
There is a little bit of cushion with one trillion extra from the RBI dividend and maybe about half a trillion in terms of better revenue than what was forecast. So, there may be a little bit more for the farmers, there could be some tax concessions at th
Capital Gains TaxMarket LeadershipCyclicalsReal EstateDefence ProductionReal Estate NewsJul 19, 2024
Ved also expects the government to provide some relief to farmers and introduce tax concessions at the lower end, given the cushion of one trillion extra from the RBI dividend and half a trillion in better revenue than forecast. However, he does not see any drastic changes to the budget construct, which has been focused on capex, infrastructure, manufacturing, and defence production.
When asked about the likelihood of populist measures, Ved said that the government has been fiscally conservative in the past and is unlikely to deviate from this approach. He also expressed confidence in the long-term growth prospects of the real estate sector, which he believes is in the early stages of a long-term cycle.
In terms of portfolio strategy, Ved advises investors to focus on the cyclicals, which have been leading the market, and to be cautious about booking profits too quickly. He believes that the leadership in these sectors will continue for the next 7-10 years, with some corrections and rotations along the way.
Alchemy Capital is a leading investment management firm that provides a range of financial services to its clients. The firm is known for its expertise in Indian equities and has a strong track record of delivering returns to its investors.
Frequently Asked Questions
Will the government change the capital gains tax?
No, the government is unlikely to make any significant changes to the capital gains tax.
What are the key sectors that will drive growth?
The key sectors that will drive growth are infrastructure, manufacturing, and defence production.
Will the government introduce populist measures?
The government has been fiscally conservative in the past and is unlikely to deviate from this approach.
What is the outlook for the real estate sector?
The real estate sector is in the early stages of a long-term cycle and has significant growth prospects.
What is the recommended portfolio strategy?
Investors should focus on the cyclicals and be cautious about booking profits too quickly.
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