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`Boost to equity investments'

Our Bureau

KOCHI, Feb. 28

THE Finance Minister's exemptions on dividened tax, as well as long term capital gains on equity is expected to stipulate enhanced appetite for equity investment going forward, market participants said.

Mr Motilal Oswal of Motilal Oswal Securities said that the Budget signals an era of structural changes in macro issues. "Investor friendly measures like the scrapping of long-term capital gains, the tax on dividend and the reduction of excise on a number of items makes for a bullish market in the long term," he reasoned.

Labelling it a growth-oriented Budget across-the-board, Mr Gul Tekchandani, CIO, Sun F&C, that the FM has delivered on whatever was talked about. "The market had discounted most of the budget news. However given the difficult external environment, the measures announced, while not ramping up the market, were positive," he added.

Commenting on the markets disappointment over the FII limit not being hiked in PSU banks, Mr Sunil Singhania, Director, Advani Stock Broking, said that expectations are always belied a little. "There has been no negative news which is an important factor. One should look at the positives, for instance the tech segment. The market had built up a lot of negatives on apprehensions of the tech sector being taxed, which has now been removed," he said.

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