Finance Minister Nirmala Sitharaman has said the prime focus of the Budget 2024 is to promote employment and skilling, provide support to MSMEs, and empower the middle class. From ITC to Titan, brokerages decode what the Budget means for the industry.
Titan stands to be a clear winner as Finance Minister Nirmala Sitharaman has proposed a significant reduction in basic Customs duties on gold, silver, and platinum, as part of the Union Budget 2024-25, say analysts rooting for an improved outlook for the jewelry maker.
Jefferies has upgraded ITC to buy, with a target price set at ₹585, implying it sees a potential upside of 17% in the stock. “No news is great news… ITC comes out as a clear winner with the government leaving tobacco taxes unchanged,” the analyst said.
How SIPs Would Be Taxed After Budget 2024?
With the increase in tax on the Short Term Capital Gains (STCG) and Long Term Capital Gains (LTCG) on equity-oriented funds announced in the Union Budget, a Systematic Investment Plan (SIP) of Rs 50,000 for 60 months in equity funds would result in a higher capital gains tax outgo of Rs 94,095 against Rs 77,456 at present.
In a double whammy for mutual fund investors, the government has increased STCG and LTCG on equity-oriented funds. The Union Budget on July 23 hiked the STCG tax on equity mutual funds to 20 percent from the current 15 percent, while LTCG tax now will be 12.5 percent compared to earlier, which was 10 percent on equity funds.
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