23 July 2024 Punjab Khabarnama : “Very disappointed with the capital gains tax, but we make a lot of money and it’s okay to pay some more taxes now,” said Amit Jeswani, Founder, Stallion Asset, on the Finance Minister’s proposal to hike long term and short term capital gains tax.
Regardless of the tax hikes, Jeswani said his fund would stick to its growth-oriented strategy.
“Our strategy remains to buy growth across industries and wherever we find growth. After two days, no one is going to speak about the budget, it will be only about earnings.”
Finance Minister Nirmala Sitharaman has hiked the long-term capital gains tax from the current 10 percent to 12.5 percent while also increasing the short-term capital gains tax from the current 15 percent to 20 percent. More importantly, the increased tax rates will be implemented with immediate effect.
“If you would have asked me in the morning how would the market react if the government increased short-term capital gain tax from 15 percent to 20 percent, I would have told you the market would be down two or three percent,” Jeswani said.
“But this market is flat or now positive probably. So this market is not reacting badly to bad news,” he said.
He added that, “The markets are giving us signs that we are in a bull market.”
Referring to Suzlon Energy, Jeswani said while the market is down, India’s largest wind energy company was trading at its upper circuit due to its positive earnings. Therefore, wherever there are earnings, there is growth and that is where the market will do its bidding.
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