15 hours Ago
Kenneth Andrade , Founder & CIO, Old Bridge Capital Management, s ays he doesn't believe that change in LTCG or STCG will cause the market to correct. If long-term capital gains rise or short-term capital gains increase, we will need to manage that in the future. However, it doesn't mean the asset class is finished.
He doesn't see it making a major impact. It will certainly influence sentiment a lot, but won’t change the situation significantly. What would be the out-of-jail card for the markets? Could it be the Fed? Could it be something on tariff? Could it be Budget or pure earnings? Kenneth Andrade: It is going to be a multiplicity of everything and just purely by historically being around for so long, it is going to come from a place that you have never seen before or you have not anticipated also before and I think that is what you cannot look out for.
The obvious parts, the obvious signals remain valuations, the obvious last quarter and this quarter, the frequency of data in India has not been too good. You have got an economy that is purely running on government spending. You have got the bottom end of the lending book which is not doing well at all.
So, you have some issues at the bottom end of the population structure. You have got the world's largest accounts for almost 70% of the world's market capitalisation –completely unsustainable – and you have new ecosystems and new leaders across the world who want to protect their asset markets or their economy. Stock Trading Maximise Returns by Investing in the Right Companies By - The Economic Times, Get Certified By India's Top Business News Brand View Program Stock Trading Market 104: Options Trading: Kickstart Your F&O Adventure By - Saketh R, Founder- QuickAlpha, Full Time Options Trader View Program Stock Trading Technical Analysis for Everyone - Technical Analysis Course By - Abhijit Paul, Technical Research Head, Fund Manager- ICICI Securities View Program Stock Trading Stock Markets Made Easy By - elearnmarkets, Financial Education by StockEdge View Program Stock Trading Renko Chart Patterns Made Easy By - Kaushik Akiwatkar, Derivative Trader and Investor View Program Stock Trading Market 101: An Insight into Trendlines and Momentum By - Rohit Srivastava, Founder- Indiacharts.
com View Program Stock Trading Markets 102: Mastering Sentiment Indicators for Swing and Positional Trading By - Rohit Srivastava, Founder- Indiacharts.com View Program Stock Trading Dow Theory Made Easy By - Vishal Mehta, Independent Systematic Trader View Program Stock Trading Market 103: Mastering Trends with RMI and Techno-Funda Insights By - Rohit Srivastava, Founder- Indiacharts.com View Program Stock Trading ROC Made Easy: Master Course for ROC Stock Indicator By - Souradeep Dey, Equity and Commodity Trader, Trainer View Program Stock Trading Heikin Ashi Trading Tactics: Master the Art of Trading By - Dinesh Nagpal, Full Time Trader, Ichimoku & Trading Psychology Expert View Program Stock Trading RSI Made Easy: RSI Trading Course By - Souradeep Dey, Equity and Commodity Trader, Trainer View Program Stock Trading Introduction to Technical Analysis & Candlestick Theory By - Dinesh Nagpal, Full Time Trader, Ichimoku & Trading Psychology Expert View Program You Might Also Like: Income tax relief on Capital Gains Deposit Scheme: Can Budget 2025 offer clarity to taxpayers to easily claim exemption on LTCG of house sale? There are a lot of things happening and the markets are not exactly cheap.
Which is why I say two years of being at the same place is not such a bad idea because in two years even if you grow single digits, the next two years, even if you grow single digits earnings at least you are giving the market a breather price earnings multiples to catch up. This year's Budget could be different because it is coming at a time when in general the market would lean on the Budget for something different and original and something which could kindle the growth. Kenneth Andrade: What can we do about it? From an economic standpoint, you can cut taxes here and there.
You can try to get consumers to spend by putting more money in their hands but those are things that you can deal with in the short term. In the longer term, if you have to take market share away from the rest of the world or if you have to grow your market share in the rest of the world from say 3% of global GDP to 5% of global GDP, you have got to incentivise your corporates to do a lot more, to invest a lot more, and one thing that we haven't seen is corporate capex. Corporate capex refuses to return.
I do not know what is going to happen in that direction. Certainly, there is no noise around that, but we will have to actually go out and see what the budget does in that specific arena. You Might Also Like: Women, youth, farmers and poor can continue to be Budget 2025's ‘roti, kapda aur makan’ Will markets get disturbed if there is a change in LTCG or STCG? Do you think that could spook the markets? Markets are just not prepared for it.
Last time they digested it, but this time they will throw up? Kenneth Andrade: I do not think that will be a reason for the market to correct itself. I mean, if LTCG gets increased or even the short-term capital gains comes higher, this is something that we will have to deal with going forward. It does not mean that is the end of the asset class.
I do not think it is going to be a significant needle mover. It will definitely affect sentiment big time, but I do not think it is going to be a big needle mover from that perspective. There is an absolute no-no if it goes this way or that way and the assumptions for next year should be very reasonable? Kenneth Andrade : Actually, from an event perspective, it is just another event that will go through.
So, I will take it as it comes. Whatever comes in, we will have to recalibrate ourselves to see whether it is material in the longer-term context of the economy. But let us talk about the budget post the event actually happens and you will have more granular details at that point in time rather than second-guessing what is going to come through.
You Might Also Like: What to expect from stock markets ahead of Budget 2025? Kranthi Bathini's take (You can now subscribe to our ETMarkets WhatsApp channel ).
