Broking stocks slip on LTCG reintroduction

NEW DELHI: Shares of brokerage firms slipped in the trade after Finance Minister Arun Jaitley reintroduced long-term capital gains tax in Budget for 2018-19.

The government today introduced long-term capital gains (LTCG) tax of 10 per cent on stock market gains exceeding Rs 1 lakh, sending the market tumbling.

Anita Gandhi, Whole Time Director at Arihant Capital Markets said the LTCG is expected to disappoint the equity market to some extent.


"Rationalisation of LTCG as expected has arrived, though negative on sentiments but robust equity returns will absorb this 10 per cent if corporate earnings growth happens as expected," said Kamlesh Rao, MD and CEO, Kotak Securities.

At the time of writing this report, shares of Motilal Oswal Financial Services (MOSL) were trading over 1 per cent lower at Rs 1,272.60, while DB (International) Stock Brokers was down 1 per cent at Rs 9.20.