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Finance Bill 2018 Pushing For Amends in FRBM Act et al

Professor of Financial Economics and Part-time Value Investor, Transfin.
Feb 3, 2018 12:25 PM 2 min read


 End of Day Wrap-up (Saturday / February 3, 2018) #UnionBudget2018 #LongTermCapitalGainsTax #FinanceBill2018 #FPI #Flipkart #RBI #CocaCola #ThumsUp #US #Transfin

Editor's comment: Finance Bill 2018 pushing for amends in the FRBM Act to allow higher borrowing and spending till 2024; Foreign Portfolio Investors approach Finance Ministry to seek relief on LTCG; RBI cancels scheduled auction of bonds due to high yields; Flipkart shows 68% rise in FY17 losses, majority of which driven by valuation write-down; Coca-Cola planning to take Thumps Up to other South Asian markets by March 2018; US stocks witness worst day in 2 years as bond yields jump.


Modi government pushes for amendments in the Fiscal Responsibility and Budget Management (FRBM) Act to target fiscal deficit of 3% by 2021, adjust debt limit accordingly, and avoid reporting of revenue deficit figures. Foreign Portfolio Investors (FPIs) approach Finance Ministry to seek relief on reintroduction of long term capital gains tax (LTCG) on equities. FPIs concerned around validity of grandfathering on them and non-abolishment of securities transactional tax (STT) in parallel. Coca-Cola announces the overseas launch of ThumsUp in addition to marking India as its fifth largest market surpassing Japan. Flipkart reports FY17 losses of INR8800 cr primarily driven by over INR300cr of valuation write-down. RBI cancelled its scheduled auction of INR110bn securities for the 3rd time since Dec amidst concerns of increasing bond yields.


Dow Jones Industrial Average, the benchmark US index closed 666 points on Friday driven by sharp rise in bond yields. Investors wary of a tightening job market and expectations of rising inflation.